Details of derivative contracts as of December 31, 2020 are as follows

(in thousands):


Date of transaction	Type of derivative		Total notional amount		Month of settlement


July 13, 2020		Zero cost collar	$	30,000	January 2021 to June 2021
December 15, 2020		Zero cost collar	$	30,000	July 2021 to December 2021
December 18, 2020		Zero cost collar	$	18,000	March 2021 to June 2021

The zero cost collar contracts qualify as cash flow hedges under ASC 815, “Derivatives and Hedging,” since at both the inception of the contracts and on an ongoing basis, the hedging relationship was and is expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk during the term of the contracts.

The fair values of the Company’s outstanding zero cost collar contracts recorded as assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands):


Derivatives designated as hedging instruments:		December 31,
Derivatives designated as hedging instruments:		2021		2020
Asset Derivatives:

Zero cost collars	Other current assets	$	—	$	2,036
Liability Derivatives:
Zero cost collars	Other current liabilities	$	2,020	$	195

Offsetting of derivative liabilities as of December 31, 2021 is as follows (in thousands):


As of December 31, 2021	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheets		Net amounts of liabilities presented in the balance sheets		Gross amounts not offset in the balance sheets					Net amount
As of December 31, 2021	Gross amounts of recognized liabilities		Gross amounts offset in the balance sheets		Net amounts of liabilities presented in the balance sheets		Financial instruments		Cash collateral pledged			Net amount
Liability Derivatives:
Zero cost collars	$	2,020	$	—	$	2,020	$	—	$	(2,060	)	$	(40	)

Offsetting of derivative assets and liabilities as of December 31, 2020 is as follows (in thousands):


As of December 31, 2020	Gross amounts of recognized assets/liabilities		Gross amounts offset in the balance sheets		Net amounts of assets/liabilities presented in the balance sheets		Gross amounts not offset in the balance sheets				Net amount
As of December 31, 2020	Gross amounts of recognized assets/liabilities		Gross amounts offset in the balance sheets				Financial instruments		Cash collateral pledged		Net amount
Asset Derivatives:


Zero cost collars	$	2,036	$	—	$	2,036	$	—	$	—	$	2,036
Liability Derivatives:
Zero cost collars	$	195	$	—	$	195	$	—	$	—	$	195

For derivative instruments that are designated and qualify as cash flow hedges, gains or losses on the derivative aside from components excluded from the assessment of effectiveness are reported as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative, representing hedge components excluded from the assessment of effectiveness, are recognized in current earnings.

The following table summarizes the impact of derivative instruments on the consolidated statements of operations for the years ended December 31, 2021 and 2020. Net sales of discontinued operations for the year ended December 31, 2020 are included in the below table (in thousands):


Derivatives in ASC 815 Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives					Location/Amount of Gain (Loss) Reclassified from AOCI Into Statement of Operations							Location/Amount of Gain Recognized in Statement of Operations on Derivatives
	2021			2020				2021			2020				2021		2020


Zero cost collars	$	(4,665	)	$	1,769		Net sales	$	(819	)	$	1,363		Other income, net	$	123	$	148

As of December 31, 2021, the amount expected to be reclassified from accumulated other comprehensive loss into loss within the next twelve months is $1,460 thousand.

The Company set aside cash deposits to the counterparties, Nomura Financial Investment (Korea) Co., Ltd. (“NFIK”), Deutsche Bank AG, Seoul Branch (“DB”) and Standard Chartered Bank Korea Limited (“SC”), as required for the zero cost collar contracts. These cash deposits are recorded as hedge collateral on the consolidated balance sheets. Cash deposits as of December 31, 2021 and 2020 are as follows (in thousands):


	December 31,
Counterparties	2021		2020
NFIK	$	—	$	3,250
DB		—		1,000
SC		1,000		1,000

Total	$	1,000	$	5,250

The Company is required to deposit additional cash collateral with NFIK and SC for any exposure in excess of $500 thousand. As of December 31, 2021, $760 thousand and $1,300 thousand of additional cash collateral were required

NFIK and SC, respectively, and recorded as hedge collateral on the consolidated balance sheet. There was no such cash collateral required as of December 31, 2020.

These zero cost collar contracts may be terminated by the counterparties in a number of circumstances, including if the Company’s borrowing rating falls below

B-/B3

or if the Company’s total cash and cash equivalents is less than $30,000 thousand at the end of a fiscal quarter, unless a waiver is

obtained.