DERIVATIVES AND HEDGING ACTIVITIES:

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING ACTIVITIES:

DERIVATIVES AND HEDGING ACTIVITIES:

Fair Value of Derivative Contracts

The fair value of derivative contracts as of December 31, 2016 and 2015 was as follows:

	Other current assets		Other accrued liabilities		Other accrued liabilities
	December 31, 2016				December 31, 2015
	(in thousands)
Derivatives designated as hedging instruments
Currency forward and option contracts	$	257	$	999	$	1,157
Derivatives not designated as hedging instruments
Currency forward and option contracts	—		7		—
Total derivatives	$	257	$	1,006	$	1,157

The gross notional amounts of derivative contracts were NIS denominated. The notional amounts of outstanding derivative contracts in U.S. dollar at December 31, 2016 and 2015 were as follows:

	December 31,		December 31,
	2016		2015
	(in thousands)
Derivatives designated as hedging instruments
Currency forward and option contracts	$	105,730	$	98,744
Derivatives not designated as hedging instruments
Currency forward and option contracts	$	34,330	$	—

Effect of Derivatives Designated as Hedging Instruments on Accumulated Other Comprehensive Income

The following table represents the unrealized losses of derivatives designated as hedging instruments, net of tax effects, that were recorded in accumulated other comprehensive income as of December 31, 2016 and 2015, and their effect on OCI for the year ended December 31, 2016 (in thousands):

December 31, 2015	$	(1,091	)
Amount of gains recognized in OCI (effective portion)	1,022
Amount of gains reclassified from OCI to income (effective portion)	(623		)
December 31, 2016	$	(692	)

Foreign exchange contracts designated as hedging instruments primarily relate to operating expenses and the associated gains and losses are expected to be recorded in operating expenses when reclassified out of OCI. See Note 11 for the amounts recorded in each operating expense account. The Company expects to realize the accumulated OCI balance related to foreign exchange contracts within the next twelve months.

Effect of Derivative Contracts on the Consolidated Statement of Operations

The effect of derivative contracts on the consolidated statement of operations in the years ended December 31, 2016, 2015, and 2014 was as follows:

	Derivatives designated as hedging instruments								Derivatives not designated as hedging instruments
	Year Ended December 31,								Year Ended December 31,
	2016		2015			2014			2016		2015		2014
	(in thousands)
Operating income (expenses)	$	623	$	(3,630	)	$	(1,239	)	$	—	$	—	$	—
Other income	$	—	$	—		$	—		$	384	$	—	$	—