Derivative Financial Instruments (Tables)
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6 Months Ended |
Jun. 30, 2018 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Details of Derivative Contracts |
Details of derivative contracts as of June 30, 2018 are as
follows (in thousands):
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Date of transaction
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Type of derivative
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Total notional amount |
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Month of settlement
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June 18, 2018
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Zero cost collar
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$ |
20,000 |
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September 2018 to December 2018
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June 18, 2018
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Forward
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$ |
40,000 |
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September 2018 to December 2018
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June 27, 2018
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Zero cost collar
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$ |
32,000 |
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September 2018 to June 2019
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June 27, 2018
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Forward
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$ |
58,000 |
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September 2018 to June 2019
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Details of derivative contracts as of December 31, 2017 are as
follows (in thousands):
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Date of transaction
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Type of derivative
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Total notional amount |
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Month of settlement
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June 22, 2017
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Zero cost collar
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$ |
20,000 |
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January 2018 to February 2018
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September 28, 2017
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Zero cost collar
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$ |
54,000 |
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January 2018 to June 2018
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September 28, 2017
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Forward
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$ |
36,000 |
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January 2018 to June 2018
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| Fair Values of Outstanding Zero Cost Collar and Forward Contracts Recorded as Assets and Liabilities |
The fair values of the Company’s outstanding zero cost collar
and forward contracts recorded as assets and liabilities as of
June 30, 2018 and December 31, 2017 are as follows (in
thousands):
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Derivatives designated as hedging instruments:
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June 30,
2018 |
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December 31,
2017 |
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Asset Derivatives:
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Zero cost collars
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Other current assets |
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$ |
— |
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$ |
2,827 |
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Forward
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Other current assets |
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$ |
— |
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$ |
2,352 |
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Liability Derivatives:
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Zero cost collars
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Other current liabilities |
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$ |
684 |
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$ |
— |
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Forward
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Other current liabilities |
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$ |
1,911 |
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$ |
— |
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| Offsetting of Derivative Liabilities |
Offsetting of derivative liabilities as of June 30, 2018 is as
follows (in thousands):
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As of June 30, 2018
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Gross amounts of
recognized
liabilities |
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Gross amounts
offset in the
balance sheets |
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Net amounts of
liabilities
presented in the
balance sheets |
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Gross amounts not offset
in the balance sheets |
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Net amount |
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Financial
instruments |
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Cash collateral
received/
pledged |
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Liability Derivatives:
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Zero cost collars
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$ |
684 |
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$ |
— |
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$ |
684 |
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$ |
— |
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|
$ |
— |
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$ |
684 |
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Forward
|
|
$ |
1,911 |
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|
$ |
— |
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|
$ |
1,911 |
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$ |
— |
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|
$ |
— |
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|
$ |
1,911 |
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| Offsetting of Derivative Assets |
Offsetting of derivative assets as of December 31, 2017 is as
follows (in thousands):
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As of December 31, 2017
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Gross amounts of
recognized assets |
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Gross amounts
offset in the
balance sheets |
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Net amounts of
assets presented in the
balance sheets |
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Gross amounts not offset
in the balance sheets |
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Net amount |
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Financial
instruments |
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Cash collateral
pledged |
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Asset Derivatives:
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Zero cost collars
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$ |
2,827 |
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$ |
— |
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$ |
2,827 |
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$ |
— |
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|
$ |
— |
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|
$ |
2,827 |
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Forward
|
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$ |
2,352 |
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$ |
— |
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$ |
2,352 |
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$ |
— |
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$ |
— |
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$ |
2,352 |
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| Impact of Derivative Instruments on Consolidated Statement of Operations |
The following table summarizes the impact of derivative instruments
on the consolidated statement of operations for the three months
ended June 30, 2018 and 2017 (in thousands):
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Derivatives in ASC 815
Cash Flow
Hedging Relationships
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Amount of Gain (Loss)
Recognized in
AOCI on
Derivatives
(Effective Portion) |
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Location of Gain
Reclassified from
AOCI into
Statement of
Operations
(Effective Portion)
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Amount of Gain
Reclassified from
AOCI into
Statement of
Operations
(Effective Portion) |
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|
Location of Loss
Recognized in
Statement of
Operations on
Derivative
(Ineffective
Portion)
|
|
Amount of Loss
Recognized in
Statement of
Operations on
Derivatives
(Ineffective Portion) |
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Three Months Ended
June 30, |
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Three Months Ended
June 30, |
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Three Months Ended
June 30, |
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2018 |
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2017 |
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2018 |
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2017 |
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2018 |
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2017 |
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Zero cost collars
|
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$ |
(1,009 |
) |
|
$ |
(1,620 |
) |
|
Net sales |
|
$ |
865 |
|
|
$ |
808 |
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Other income (expenses), net |
|
$ |
(247 |
) |
|
$ |
(368 |
) |
|
Forwards
|
|
$ |
(861 |
) |
|
$ |
26 |
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Net sales |
|
$ |
1,170 |
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|
$ |
— |
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Other income (expenses), net |
|
$ |
(1,385 |
) |
|
$ |
(99 |
) |
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Total
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$ |
(1,870 |
) |
|
$ |
(1,594 |
) |
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$ |
2,035 |
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$ |
808 |
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$ |
(1,632 |
) |
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$ |
(467 |
) |
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The following table summarizes the impact of derivative instruments
on the consolidated statement of operations for the six months
ended June 30, 2018 and 2017 (in thousands):
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Derivatives in ASC
815 Cash Flow Hedging
Relationships
|
|
Amount of Gain
Recognized in
AOCI on
Derivatives
(Effective Portion) |
|
|
Location of Gain
Reclassified from
AOCI into
Statement of
Operations
(Effective Portion)
|
|
Amount of Gain
Reclassified from
AOCI into
Statement of
Operations
(Effective Portion) |
|
|
Location of Gain
(Loss) Recognized in
Statement of
Operations on
Derivative
(Ineffective Portion)
|
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Amount of Gain
(Loss) Recognized in
Statement of
Operations on
Derivatives
(Ineffective Portion) |
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Six Months Ended
June 30, |
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Six Months Ended
June 30, |
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Six Months Ended
June 30, |
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2018 |
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2017 |
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2018 |
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2017 |
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2018 |
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2017 |
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Zero cost collars
|
|
$ |
(1,142 |
) |
|
$ |
883 |
|
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Net sales |
|
$ |
2,191 |
|
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$ |
1,305 |
|
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Other income (expenses), net |
|
$ |
(318 |
) |
|
$ |
269 |
|
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Forwards
|
|
$ |
(795 |
) |
|
$ |
26 |
|
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Net sales |
|
$ |
2,450 |
|
|
$ |
— |
|
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Other income (expenses), net |
|
$ |
(1,390 |
) |
|
$ |
(99 |
) |
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Total
|
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$ |
(1,937 |
) |
|
$ |
909 |
|
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|
$ |
4,641 |
|
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$ |
1,305 |
|
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$ |
(1,708 |
) |
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$ |
170 |
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