DERIVATIVES AND HEDGING ACTIVITIES:

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING ACTIVITIES:

DERIVATIVES AND HEDGING ACTIVITIES:

As of June 30, 2016, the Company had derivative contracts in place hedging future Israeli New Shekel ("NIS") denominated operating expenses that the Company expects to incur over the next twelve months. In addition, the Company had derivative contracts in place that hedge the fair value of NIS denominated net assets. The Company recorded gains and losses on both the net assets and the derivative contracts designated as fair value hedges in the consolidated statements of operations as a component of other (loss) income.

Foreign exchange contracts designated as cash flow hedges relate primarily to operating expenses and the associated gains and losses are expected to be recorded in operating expenses when reclassified out of OCI. The Company expects to realize the accumulated OCI balance related to cash flow hedge contracts within the next 12 months.

Fair Value of Derivative Contracts

The fair value of derivatives in the unaudited condensed consolidated balance at June 30, 2016 and December 31, 2015 were as follows:

		Other current assets		Other accrued liabilities		Other accrued liabilities
		June 30, 2016				December 31, 2015
		(in thousands)
Derivatives designated as hedging instruments
	Currency forward contracts	$	630	$	524	$	1,157
Total derivatives		$	630	$	524	$	1,157

The gross notional amounts of derivative contracts were NIS denominated. The notional amounts of outstanding derivative contracts at June 30, 2016 and December 31, 2015 were as follows:

	June 30, 2016		December 31, 2015
	(in thousands)
Derivatives designated as hedging instruments
Currency forward contracts	$	93,420	$	98,744
Derivatives not designated as hedging instruments
Currency forward contracts	$	26,019	$	—

Effect of Designated Derivative Contracts on Accumulated Other Comprehensive Income

The following table represents the balance of derivative contracts designated as cash flow hedges as of June 30, 2016 and December 31, 2015 and their impact on OCI for the six months endedJune 30, 2016:

	(in thousands)
December 31, 2015	$	(1,091	)
Amount of gain recognized in OCI (effective portion)	1,510
Amount of gain reclassified from OCI to income (effective portion)	(161		)
June 30, 2016	$	258

Effect of Derivative Contracts on the Unaudited Condensed Consolidated Statement of Operations

The effect of derivative contracts on the unaudited condensed consolidated statements of operations for the three months endedJune 30,2016 and 2015 was:

	Derivatives designated as hedging instruments					Derivatives not designated as hedging instruments
	Three Months Ended June 30,					Three Months Ended June 30,
Location of gains (losses)	2016		2015			2016			2015
	(in thousands)
Operating expenses	$	23	$	(737	)	$	—		$	—
Other (loss) income	$	—	$	—		$	(271	)	$	—

The effect of derivative contracts on the unaudited condensed consolidated statements of operations for the six months ended June 30, 2016 and 2015 was:

	Derivatives designated as hedging instruments					Derivatives not designated as hedging instruments
	Six Months Ended June 30,					Six Months Ended June 30,
Location of gains (losses)	2016		2015			2016			2015
	(in thousands)
Operating expenses	$	161	$	(3,010	)	$	—		$	—
Other (loss) income	$	—	$	—		$	(543	)	$	—

The net gains or losses relating to the ineffective portion of derivative contracts designed as hedging instruments were not material in the three and six months ended June 30,2016 and 2015.