Company: QLYS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001107843-25-000017
Chunk: 149

Company: QUALYS, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 149
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The Company also uses foreign currency forward contracts to hedge certain foreign currency denominated assets or liabilities, which are not designated as cash flow hedges. Unrealized foreign exchange gain or losses related to the non-designated forward contracts are recorded in other income (expenses), net and offset the foreign exchange gain or loss on the underlying net monetary assets or liabilities.As of March 31, 2025, the Company had non-designated forward contracts with notional amounts of €18.7 million, £7.3 million, and Rs.1,650.0 million. As of December 31, 2024, the Company had non-designated forward contracts with notional amounts of €27.0 million, £8.0 million, Rs.1,252.0 million, and Canadian Dollar ("C$" or "CAD") C$1.0 million.The following summarizes the fair value of derivative financial instruments as of March 31, 2025 and December 31, 2024:March 31,2025December 31,2024(in thousands)AssetsForeign currency forward contracts designated as cash flow hedge$549 $2,495 Foreign currency forward contracts not designated as hedging instruments6 80 Total$555 $2,575 LiabilitiesForeign currency forward contracts designated as cash flow hedge$2,034 $1,315 Foreign currency forward contracts not designated as hedging instruments139 24 Total$2,173 $1,339 The Company presents its derivative assets and derivative liabilities at gross fair values in the condensed consolidated balance sheets. However, under the master netting agreements with the respective counterparties of the foreign exchange contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a 

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single net amount payable by one party to the other. The potential offset to both assets and liabilities under the right of set-off associated with the Company's foreign currency exchange contracts are immaterial as of March 31, 2025 and December 31, 2024. The derivatives held by the Company are not subject to any credit contingent features negotiated with its counterparties. The Company is not required to pledge nor is entitled to receive cash collateral related to the above contracts. The counterparties to these derivatives are large, global financial institutions that the Company believes are creditworthy, and therefore, it does not consider the risk of counterparty nonperformance to be material.The following summarizes the gains (losses) recognized from forward contracts and other