Derivative Financial Instruments

9 Months Ended

Sep. 30, 2018

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

Note 16.  Derivative Financial Instruments

The Company is exposed to certain risks related to its ongoing business operations. The primary risk managed by using derivative instruments is foreign currency risk.  From time to time the Company's foreign subsidiaries enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates.  The fair value of the derivative financial instruments is recorded on the Company's balance sheet and is adjusted to fair value at each measurement date.  The changes in fair value are recognized in the consolidated statements of operations in the current period.  The Company does not engage in speculative transactions nor does it hold or issue financial instruments for trading purposes.  The average U.S. dollar equivalent notional amount of outstanding foreign currency exchange contracts was $11,046 during the nine-month period ended September 30, 2018. The Company reported $345 of derivative assets in other current assets at September 30, 2018 and $112 of derivative liabilities in other current liabilities at December 31, 2017.  The Company recognized, as a component of cost of sales, a net gain of $169 and a net loss of $291 on the changes in fair value of derivative financial instruments in the three-month periods ended September 30, 2018 and 2017, respectively. The Company recognized, as a component of cost of sales, a net gain of $855 and a net loss of $683 on the changes in fair value of derivative financial instruments in the nine-month periods ended September 30, 2018 and 2017, respectively.  There were no derivatives that were designated as hedges at September 30, 2018.