DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2019 and 2018 (in thousands and net of tax):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018

Aggregate unrealized net gain/(loss) at beginning of period	$	(765)	$	(17,259)	$	(8,278)	$	(15,746)
Add: Net gain/(loss) from change in fair value of cash flow hedges		1,695		8,429		11,791		14,374
Less: Net (gain)/loss reclassified to earnings from effective hedges		(793)		(2,981)		(3,376)		(10,439)
Aggregate unrealized net gain/(loss) at end of period	$	137	$	(11,811)	$	137	$	(11,811)

Schedule of Notional Amounts of Outstanding Cash Flow Hedges

The Company’s foreign exchange cash flow hedging instruments as of September 30, 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 September 30, 2019

Amount

12 months

Through

Philippine Peso

6,311,000

119,751

(1)

57.6

April 2022

Mexican Peso

1,162,500

55,672

50.9

December 2021

175,423


	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 September 30, 2019 and December 31, 2018.

Schedule of Derivatives Instruments on Balance Sheet

The Company’s derivatives as of September 30, 2019 and December 31, 2018 were as follows (in thousands):


	September 30, 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	$	1,645	$	259
Other long-term assets		1,624		—
Other current liabilities		(2,552)		(148)
Other long-term liabilities		(516)		—
Total fair value of derivatives, net	$	201	$	111


	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 the effects of derivative instruments on the Statements of Comprehensive Income (Loss)

The effects of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended September 30, 2019 and 2018 were as follows (in thousands):


	Three Months Ended September 30,
	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	$	(793)	$	(2,981)

Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion:
Revenue	$	(1,087)	$	(4,085)


	Three Months Ended September 30,
	2019		2018
Designation:	Not Designated as Hedging Instruments
Derivative contract type:	Foreign Exchange
Derivative classification:	Fair Value

Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss):
Other income (expense), net	$	57	$	(956)

The effects of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2019 and 2018 were as follows (in thousands):


	Nine Months Ended September 30,
	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	$	(3,376)	$	(10,439)

Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion:
Revenue	$	(4,625)	$	(14,300)


	Nine Months Ended September 30,
	2019		2018
Designation:	Not Designated as Hedging Instruments
Derivative contract type:	Foreign Exchange
Derivative classification:	Fair Value

Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss):
Other income (expense), net	$	(1,160)	$	(6,651)