Derivatives and hedging

3 Months Ended

Mar. 31, 2020

Derivatives and hedging

Derivatives and hedging.

Note 8:—Derivatives and hedging

The Company entered into forward contracts to hedge certain forecasted payments denominated in NIS, mainly payroll and rent, against exchange rate fluctuations of the U.S. dollar for a period of up to twelve months. The Company recorded the cash flows associated with these derivatives under operating activities.

The Company had outstanding forward contracts designated as hedging instruments in the aggregate notional amount of $30,500 (unaudited) as of March 31, 2020 and $7,500 and $20,400 as of December 31, 2019 and 2018, respectively. The fair value of the Company’s outstanding forward contracts amounted to an asset of $300 (unaudited) and a liability of $418 (unaudited) as of March 31, 2020 and an asset of $179 and a liability of $598 as of December 31, 2019 and 2018 respectively, recorded under other receivables and accrued expenses respectively. During the three months ended March 31, 2020 and  2019, gains of $77 (unaudited) and losses of $172 (unaudited), respectively were reclassified from accumulated other comprehensive loss (income). Gains of $261 and losses of $327 were reclassified from accumulated other comprehensive loss (income) during the years ended December 31, 2019 and 2018 respectively. Such gains and losses were reclassified from accumulated other comprehensive loss (income) when the related expenses were incurred. These losses were recorded in the consolidated statements of operations as follows:

	Three months ended March 31,				Year ended December 31,
	2020		2019		2019		2018		2017
	(unaudited)		(unaudited)
Cost of revenue	$	(6)	$	12	$	(17)	$	23	$	—
Research and development		(41)		94		(142)		173		—
Sales and marketing		(15)		29		(59)		60		—
General and administrative		(15)		37		(43)		71		—
	$	(77)	$	172	$	(261)	$	327	$	—