NOTE 11: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As of December 31, 2022, the Company entered into forward contracts and put and call options to sell U.S. dollars (“USD”) for NIS in the amount of approximately NIS 194 million and NIS 18 million, respectively.

The fair values of outstanding derivative instruments were as follows:

	Balance sheet location	December 31, 2022			December 31, 2021
Derivative assets of options and forward contracts:
Designated cash flow hedges	Prepaid expenses and other current assets	$	-		$	992
Non-designated hedges	Prepaid expenses and other current assets		-			3,017
Total derivative assets		$	-		$	4,009
Derivative liabilities of options and forward contracts:
Designated cash flow hedges	Accrued expenses and other current liabilities	$	(1,874	)	$	-
Non-designated hedges	Accrued expenses and other current liabilities		-			(169	)
Total derivative liabilities		$	(1,874	)	$	(169	)

Gains (losses) on derivative instruments recognized in the consolidated statements of income are summarized below:

	Year ended December 31,
	2022		2021			2020			Affected line item
Foreign exchange contracts
Non Designated Hedging Instruments	$	4,716		$	9,417	$	(4,013	)	Financial income (expense), net

See Note 20 for information regarding gains (losses) from designated hedging instruments reclassified from accumulated other comprehensive loss.

Gains (losses) on derivative instruments recognized in the consolidated statements of comprehensive income were as follows:

	Year ended December 31
	2022			2021		2020
Foreign exchange contracts:
Designated Hedging Instruments	$	(8,965	)	$	3,289	$	966

As of December 31, 2022, the Company estimates that all of the net derivative losses related to the Company's foreign exchange cash flow hedges included in accumulated other comprehensive loss will be reclassified into earnings within the next 12 months.