Derivative Instruments

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

The Company uses foreign currency exchange forward contracts to manage the impact of currency exchange fluctuations on earnings and cash flows. The Company does not enter into derivative instruments for speculative purposes. The Company is exposed to potential credit loss in the event of nonperformance by counterparties on its outstanding derivative instruments but the Company does not anticipate nonperformance by any of its counterparties. Should a counterparty default, the Company's maximum loss exposure would be the potential asset balance of the instrument.

The cash flow effect of the derivative instruments settlement is recorded in cash flows from operations.

There were no derivative instruments outstanding as of December 31, 2023 and the dollar amounts of outstanding derivative instruments as of December 31, 2022 is presented in thousands below:

December 31, 2022

Classification

Foreign Exchange Forward

(Dollars in thousands)

Gross notional amount

N/A

6,128

Fair value

Accrued liabilities

558

Unrealized loss

Other income (expense), net

(558)