DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Cash Flow Hedges OCI Rollforward

The following table summarizes the aggregate unrealized net gain or loss in Accumulated other comprehensive income (loss) for the six months ended June 30, 2018 and 2017 (in thousands and net of tax):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017

Aggregate unrealized net gain/(loss) at beginning of period	$	(15,753)	$	(24,209)	$	(15,746)	$	(32,393)
Add: Net gain/(loss) from change in fair value of cash flow hedges		2,059		7,448		5,945		19,768
Less: Net (gain)/loss reclassified to earnings from effective hedges		(3,565)		(2,969)		(7,458)		(7,105)
Aggregate unrealized net gain/(loss) at end of period	$	(17,259)	$	(19,730)	$	(17,259)	$	(19,730)

Schedule of Notional Amounts of Outstanding Cash Flow Hedges

The Company’s foreign exchange cash flow hedging instruments as of June 30, 2018 and December 31, 2017 are summarized as follows (amounts in thousands). All hedging instruments are forward contracts.

Local

Currency

U.S. Dollar

% Maturing

Contracts

Notional

in the next

Maturing

As of June 30, 2018

Amount

12 months

Through

Philippine Peso

8,138,750

162,746

(1)

61.2

August 2021

Mexican Peso

1,279,000

72,392

50.2

May 2021

235,138


	Local
	Currency	U.S. Dollar
	Notional	Notional
As of December 31, 2017	Amount	Amount
Philippine Peso	10,685,000		219,917	(1)
Mexican Peso	1,609,000		93,589
		$	313,506

⁽¹⁾

Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on June 30, 2018 and December 31, 2017.

Schedule of Derivatives Instruments on Balance Sheet

The Company’s derivatives as of June 30, 2018 and December 31, 2017 were as follows (in thousands):


	June 30, 2018
	Designated		Not Designated
	as Hedging		as Hedging
Designation:	Instruments		Instruments
	Foreign		Foreign
Derivative contract type:	Exchange		Exchange
Derivative classification:	Cash Flow		Fair Value

Fair value and location of derivative in the Consolidated Balance Sheet:
Prepaids and other current assets	$	424	$	1,617
Other long-term assets		—		—
Other current liabilities		(15,968)		(285)
Other long-term liabilities		(8,083)		—
Total fair value of derivatives, net	$	(23,627)	$	1,332


	December 31, 2017
	Designated		Not Designated
	as Hedging		as Hedging
Designation:	Instruments		Instruments
	Foreign		Foreign
Derivative contract type:	Exchange		Exchange
Derivative classification:	Cash Flow		Fair Value

Fair value and location of derivative in the Consolidated Balance Sheet:
Prepaids and other current assets	$	220	$	1,603
Other long-term assets		393		—
Other current liabilities		(15,603)		(133)
Other long-term liabilities		(11,266)		—
Total fair value of derivatives, net	$	(26,256)	$	1,470

Schedule of Derivative Impact on Statement of Comprehensive Income

The effects of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended June 30, 2018 and 2017 were as follows (in thousands):


	Three Months Ended June 30,
	2018				2017
	Designated as Hedging				Designated as Hedging
Designation:	Instruments				Instruments
	Foreign		Interest		Foreign		Interest
Derivative contract type:	Exchange		Rate		Exchange		Rate
Derivative classification:	Cash Flow		Cash Flow		Cash Flow		Cash Flow

Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax	$	(3,565)	$	—	$	(2,953)	$	(16)

Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion:
Revenue	$	(4,883)	$	—	$	(5,091)	$	—
Interest expense		—		—		—		(26)


	Three Months Ended June 30,
	2018				2017
Designation:	Not Designated as Hedging Instruments				Not Designated as Hedging Instruments
Derivative contract type:	Foreign Exchange				Foreign Exchange

Derivative classification:	Forward Contracts		Fair Value		Forward Contracts		Fair Value

Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss):
Costs of services	$	—	$	—	$	—	$	—
Other income (expense), net	$	—	$	(2,343)	$	—	$	416

The effects of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the six months ended June 30, 2018 and 2017 were as follows (in thousands):


	Six Months Ended June 30,
	2018				2017
	Designated as Hedging				Designated as Hedging
Designation:	Instruments				Instruments
	Foreign		Interest		Foreign		Interest
Derivative contract type:	Exchange		Rate		Exchange		Rate
Derivative classification:	Cash Flow		Cash Flow		Cash Flow		Cash Flow

Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax	$	(7,458)	$	—	$	(7,036)	$	(69)

Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion:
Revenue	$	(10,215)	$	—	$	(11,897)	$	—
Interest expense		—		—		—		(115)


	Six Months Ended June 30,
	2018				2017
Designation:	Not Designated as Hedging Instruments				Not Designated as Hedging Instruments
Derivative contract type:	Foreign Exchange				Foreign Exchange

Derivative classification:	Forward Contracts		Fair Value		Forward Contracts		Fair Value

Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss):
Costs of services	$	—	$	—	$	—	$	—
Other income (expense), net	$	—	$	(5,695)	$	—	$	(360)