DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2020

DERIVATIVES [ABSTRACT]

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, 2020 and 2019 (in thousands and net of tax):

	Three Months Ended March 31,
	2020		2019
Aggregate unrealized net gain/(loss) at beginning of period	$	4,182	$	(8,278)
Add: Net gain/(loss) from change in fair value of cash flow hedges		(7,913)		4,906
Less: Net (gain)/loss reclassified to earnings from effective hedges		110		(1,845)
Aggregate unrealized net gain/(loss) at end of period	$	(3,621)	$	(5,217)

Schedule of Notional Amounts of Outstanding Cash Flow Hedges

The Company’s foreign exchange cash flow hedging instruments as of March 31, 2020 and December 31, 2019 are summarized as follows (amounts in thousands). All hedging instruments are forward contracts.

	Local
	Currency	U.S. Dollar			% Maturing		Contracts
	Notional	Notional			in the next		Maturing
As of March 31, 2020	Amount	Amount			12 months		Through
Philippine Peso	6,275,000		117,845	(1)	58.4	%	December 2022
Mexican Peso	1,371,500		63,540		47.5	%	December 2022
		$	181,385

	Local
	Currency	U.S. Dollar
	Notional	Notional
As of December 31, 2019	Amount	Amount
Philippine Peso	7,715,000		147,654	(1)
Mexican Peso	1,299,500		61,529
		$	209,183

⁽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, 2020 and December 31, 2019.

Schedule of Derivatives Instruments on Balance Sheet

The Company’s derivatives as of March 31, 2020 and December 31, 2019 were as follows (in thousands):

	March 31, 2020
	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	$	2,714	$	73
Other long-term assets		1,388		—
Other current liabilities		(4,811)		(464)
Other long-term liabilities		(4,168)		—
Total fair value of derivatives, net	$	(4,877)	$	(391)

	December 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	$	3,467	$	205
Other long-term assets		3,525		—
Other current liabilities		(1,223)		(107)
Other long-term liabilities		(95)		—
Total fair value of derivatives, net	$	5,674	$	98

Schedule of cash flow hedge 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, 2020 and 2019 were as follows (in thousands):

	Three Months Ended March 31,
	2020		2019
	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	$	110	$	(1,845)
Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion:
Revenue	$	151	$	(2,527)

Schedule of fair value derivative impact on Statement of Comprehensive Income

	Three Months Ended March 31,
	2020		2019
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	$	(330)	$	248

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 March 31, 2020 and 2019 were as follows (in thousands):

	Three Months Ended March 31,
	2020		2019
	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	$	110	$	(1,845)
Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion:
Revenue	$	151	$	(2,527)

	Three Months Ended March 31,
	2020		2019
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	$	(330)	$	248