Derivative Financial Instruments

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

A.    FAIR VALUE OF DERIVATIVE INSTRUMENTS

Derivative financial instruments are presented as other assets or other payables. For asset derivatives and liability derivatives, the fair value of the Company’s outstanding derivative instruments as of December 31, 2015 and December 31, 2014 is summarized below:

	Asset Derivatives (*)				Liability Derivatives (**)
	December 31, 2015		December 31, 2014		December 31, 2015		December 31, 2014
Derivatives designated as hedging instruments
Foreign exchange contracts	16,475		12,528		7,802		39,813
Cross-currency interest rate swaps	10,858		12,730		2,266		4,529
	$	27,333	$	25,258	$	10,068	$	44,342
Derivatives not designated as hedging instruments
Foreign exchange contracts	204		1,030		487		500
	$	204	$	1,030	$	487	$	500

(*)    Presented as part of other receivables and long-term other receivables.

(**)    Presented as part of other payables and long-term other payables.

B.    EFFECT ON CASH FLOW HEDGING

The effect of derivative instruments on cash flow hedging and the relationship between income and other comprehensive income for the years ended December 31, 2015 and December 31, 2014 is summarized below:

	Gain (Loss) Recognized in Other Comprehensive Income on Effective- Portion of Derivative, net					Gain (loss) on Effective Portion of Derivative Reclassified from Accumulated Other Comprehensive Income (*)					Ineffective Portion of Gain (loss) of Derivative and Amount Excluded from Effectiveness Testing Recognized in Income (**)
	December 31, 2015		December 31, 2014			December 31, 2015		December 31, 2014			December 31, 2015		December 31, 2014
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	8,487	$	(28,845	)	$	28,177	$	(5,081	)	$	1,522	$	1,039
Derivatives not designated as hedging instruments:
Foreign exchange contracts and other derivatives instruments	$	—	$	—		$	—	$	—		$	4,186	$	(13,314	)

^(*)    Presented as part of revenues/cost of revenue.

^(**)    Presented as part of financial income (expenses), net

Note 19 - DERIVATIVE FINANCIAL INSTRUMENTS (Cont.)

C.    NET EFFECT OF CROSS-CURRENCY SWAPS

The annual net effect on earnings from the cross-currency swaps was a gain of approximately $9,866, of which approximately $1,880 was offset against exchange rate difference related to Series A Notes and approximately $7,986 was offset against interest expenses.

D.    FORWARD CONTRACTS

The notional amounts of outstanding foreign exchange forward contracts at December 31, 2015 and December 31, 2014, is summarized below:

	Forward contracts
	Buy				Sell
	December 31,				December 31,
	2015		2014		2015		2014
Euro	$	46,094	$	53,154	$	132,220	$	157,077
GBP	10,820		7,398		35,460		23,614
NIS	5,500		629,912		697,467		—
Other	7,417		19,794		2,245		22,832
	$	69,831	$	710,258	$	867,392	$	203,523