DERIVATIVES AND HEDGING ACTIVITIES

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018 was as follows:

	Other current assets		Other accrued liabilities		Other current assets		Other accrued liabilities
	December 31, 2019				December 31, 2018
	(in thousands)
Derivatives designated as hedging instruments
Currency forward and option contracts	$	1,056	$	—	$	27	$	2,122
Derivatives not designated as hedging instruments
Currency forward and option contracts	—		—		69		414
Total derivatives	$	1,056	$	—	$	96	$	2,536

The gross notional amounts of derivative contracts were NIS denominated. The notional amounts of outstanding derivative contracts in U.S. dollar at December 31, 2019 and 2018 were as follows:

	December 31,		December 31,
	2019		2018
	(in thousands)
Derivatives designated as hedging instruments
Currency forward and option contracts	$	85,648	$	92,956
Derivatives not designated as hedging instruments
Currency forward and option contracts	$	—	$	57,844

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

The following table represents the unrealized gains (losses) of derivatives designated as hedging instruments, net of tax effects, that were recorded in accumulated other comprehensive income (loss) as of December 31, 2019 and 2018, and their effect on OCI for the year ended December 31, 2019 (in thousands):

December 31, 2018	$	(1,978	)
Amount of gains recognized in OCI (effective portion)	5,027
Amount of gains reclassified from OCI to income (effective portion)	(2,072		)
December 31, 2019	$	977

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, "Accumulated Other Comprehensive Income (Loss)" 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, 2019, 2018, and 2017 was as follows:

	Derivatives designated as hedging instruments							Derivatives not designated as hedging instruments
	Year Ended December 31,							Year Ended December 31,
	2019		2018			2017		2019		2018			2017
	(in thousands)
Operating income (expenses)	$	2,072	$	(4,787	)	$	7,034	$	—	$	—		$	—
Other income (expenses)	$	—	$	—		$	—	$	2,331	$	(4,553	)	$	3,248