DERIVATIVES AND HEDGING

9 Months Ended

Sep. 30, 2024

DERIVATIVES AND HEDGING

DERIVATIVES AND HEDGING

NOTE 6 – DERIVATIVES AND HEDGING

The table below summarizes the gross notional amount and fair value of outstanding derivative instruments at September 30, 2024. No derivative instruments were outstanding at December 31, 2023.

			September 30, 2024
	Balance Sheet Location		Notional Amount		Fair Value
Derivative assets designated as hedge accounting instruments:
Foreign currency forwards		Other Current Assets	$	52,265	$	507
Foreign currency net purchased options		Other Current Assets		4,053		1
Total derivative assets			$	56,318	$	508
Derivative liabilities designated as hedge accounting instruments:
Foreign currency net purchased options		Other payables	$	8,098	$	5
Total derivative liabilities			$	8,098	$	5

During the three and nine months ended September 30, 2024, the Company recognized $793 and $20 in unrealized gains, net of tax, on derivative instruments designated as cash flow hedges in OCI, respectively.

As of September 30, 2024, the Company estimated that $503 of unrealized gains related to cash flow hedges currently included in AOCI are expected to be reclassified into earnings within the next 12 months. As of September 30, 2024, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions is 9 months. During the three and nine months ended September 30, 2024, the Company did not discontinue any cash flow hedges because it was probable that the original forecasted transaction would not occur and as such, did not reclassify any gains or losses to earnings prior to the occurrence of the hedged transaction.