Note 6 - Instruments and Risk Management

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

6.

          INSTRUMENTS AND RISK MANAGEMENT

The Company has limited involvement with derivative instruments and does

not

trade them. The Company does use derivatives to manage certain interest rate and foreign currency exchange rate exposures.

At

December 

31,

2019

and

2018,

 the Company had

no

 

derivative instruments designated as effective hedges.

From time to time, to minimize risk associated with foreign currency exposures on receivables for sales denominated in foreign currencies, the Company enters into various foreign currency forward exchange contracts, which are intended to minimize the currency exchange rate exposure from expected future cash flows. The forward currency contracts have maturity dates of up to 

one

year at the date of inception. At

December 

31,

2019

and

2018,

no

foreign currency forward exchange contracts were outstanding.

In conjunction with the mortgage note payable for the purchase of the headquarters facility completed in

2013,

the Company entered into a Swap Transaction Confirmation agreement effective

October 1, 2013,

which had a maturity date of

ten

years incorporating the terms and definitions of the International Swaps and Derivatives Association, Inc. (ISDA) that effectively fixed our effective annual interest rate at 

6.27%.

In

December 2018,

the Company closed out the swap upon the sale and leaseback of the Company's headquarters since the underlying mortgage note payable was paid off.

The amount of gain recognized in income on the statement of operations is summarized below:

	Location of Gain
	Recognized in Income	For the Years Ended December 31,
(In thousands)		2019		2018		2017
Interest rate swap:	Other income (expense)	$	—	$	129	$	111