Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Cash Flow Hedges

As of September 30, 2015, the Company’s cash flow hedges had maturities within 1 month to 2.25 years, as follows (in thousands):

	Notional Amount		Fair Value (1)			Accumulated other comprehensive income (loss) (2) (3)
Derivative assets	$	345,806	$	11,171		$	23,874
Derivative liabilities		92,137		(2,310	)		(15,637	)
	$	437,943	$	8,861		$	8,237

(1) All derivative assets related to cash flow hedges are included in the condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.

(2) Included in the condensed consolidated balance sheets within accumulated other comprehensive income (loss).

(3) The Company recorded a net gain of $8,112 within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenue and expenses as they mature in the next 12 months.

As of December 31, 2014, the Company’s cash flow hedges had maturities within 1 month to 1 year as follows (in thousands):

	Notional Amount		Fair Value (1)		Accumulated other comprehensive income (loss) (2)
Derivative assets	$	281,055	$	8,404	$	8,480
Derivative liabilities		—		—		—
	$	281,055	$	8,404	$	8,480

(1) All derivative assets related to cash flow hedges are included in the condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.

(2) Included in the condensed consolidated balance sheets within accumulated other comprehensive income (loss).

Schedule of Fair Value of Derivative Instruments Recognized in Consolidated Balance Sheets

The following table presents the fair value of derivative instruments recognized in the Company’s condensed consolidated balance sheets as of September 30, 2015 (in thousands):

	Gross Amounts		Gross amounts offset in the balance sheet		Net amounts (1)		Gross amounts not offset in the balance sheet (2)			Net
Assets:
Designated as hedging instruments:
Foreign currency forward contracts	$	11,171	$	—	$	11,171	$	(2,310	)	$	8,861
Not designated as hedging instruments:
Embedded derivatives		10,411		—		10,411		—			10,411
Economic hedges of embedded derivatives		17		—		17		(17	)		—
Foreign currency forward and option contracts		18,942		—		18,942		(10,655	)		8,287
		29,370		—		29,370		(10,672	)		18,698
Additional netting benefit		—		—		—		(4,223	)		(4,223	)
	$	40,541	$	—	$	40,541	$	(17,205	)	$	23,336
Liabilities:
Designated as hedging instruments:
Foreign currency forward contracts	$	2,310	$	—	$	2,310	$	(2,310	)	$	—
Not designated as hedging instruments:
Embedded derivatives		1,649		—		1,649		—			1,649
Economic hedges of embedded derivatives		194		—		194		(17	)		177
Foreign currency forward and option contracts		15,182		—		15,182		(10,655	)		4,527
		17,025		—		17,025		(10,672	)		6,353
Additional netting benefit		—		—		—		(4,223	)		(4,223	)
	$	19,335	$	—	$	19,335	$	(17,205	)	$	2,130

(1) As presented in the Company’s condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.

(2) The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default.

The following table presents the fair value of derivative instruments recognized in the Company’s condensed consolidated balance sheets as of December 31, 2014 (in thousands):

	Gross Amounts		Gross amounts offset in the balance sheet		Net balance sheet amounts (1)		Gross amounts not offset in the balance sheet (2)			Net
Assets:
Designated as hedging instruments:
Foreign currency forward contracts	$	8,404	$	—	$	8,404	$	—		$	8,404
Not designated as hedging instruments:
Embedded derivatives		9,182		—		9,182		—			9,182
Foreign currency forward and option contracts		5,153		—		5,153		(138	)		5,015
		14,335		—		14,335		(138	)		14,197
Additional netting benefit		—		—		—		(508	)		(508	)
	$	22,739	$	—	$	22,739	$	(646	)	$	22,093
Liabilities:
Designated as hedging instruments:
Foreign currency forward contracts	$	—	$	—	$	—	$	—		$	—
Not designated as hedging instruments:
Embedded derivatives		4		—		4		—			4
Economic hedges of embedded derivatives		390		—		390		—			390
Foreign currency forward and option contracts		416		—		416		(138	)		278
		810		—		810		(138	)		672
Additional netting benefit		—		—		—		(508	)		(508	)
	$	810	$	—	$	810	$	(646	)	$	164

(1) As presented in the Company’s condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.

(2) The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default.