DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2019

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 three months ended March 31, 2019 and 2018 (in thousands and net of tax):


	Three Months Ended March 31,
	2019		2018

Aggregate unrealized net gain/(loss) at beginning of period	$	(8,278)	$	(15,746)
Add: Net gain/(loss) from change in fair value of cash flow hedges		4,906		3,886
Less: Net (gain)/loss reclassified to earnings from effective hedges		(1,845)		(3,893)
Aggregate unrealized net gain/(loss) at end of period	$	(5,217)	$	(15,753)

Schedule of Notional Amounts of Outstanding Cash Flow Hedges

The Company’s foreign exchange cash flow hedging instruments as of March 31, 2019 and December 31, 2018 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 March 31, 2019

Amount

12 months

Through

Philippine Peso

5,270,000

102,622

(1)

60.5

December 2021

Mexican Peso

932,500

48,002

57.6

December 2021

150,624


	Local
	Currency	U.S. Dollar
	Notional	Notional
As of December 31, 2018	Amount	Amount
Philippine Peso	6,710,000		130,957	(1)
Mexican Peso	1,091,500		57,708
		$	188,665

⁽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 March 31, 2019 and December 31, 2018.

Schedule of Derivatives Instruments on Balance Sheet

The Company’s derivatives as of March 31, 2019 and December 31, 2018 were as follows (in thousands):


	March 31, 2019
	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	$	619	$	236
Other long-term assets		649		—
Other current liabilities		(6,255)		(237)
Other long-term liabilities		(2,150)		—
Total fair value of derivatives, net	$	(7,137)	$	(1)


	December 31, 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	$	814	$	60
Other long-term assets		215		—
Other current liabilities		(8,861)		(104)
Other long-term liabilities		(3,484)		—
Total fair value of derivatives, net	$	(11,316)	$	(44)

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 March 31, 2019 and 2018 were as follows (in thousands):


	Three Months Ended March 31,
	2019		2018
	Designated as Hedging
Designation:	Instruments
Derivative contract type:	Foreign Exchange
Derivative classification:	Cash Flow

Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax	$	(1,845)	$	(3,893)

Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion:
Revenue	$	(2,527)	$	(5,332)


	Three Months Ended March 31,
	2019				2018
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):
Other income (expense), net	$	—	$	248	$	—	$	(3,352)