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Derivative Instruments
3 Months Ended
Mar. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Instruments

11.

Derivative Instruments

The Company periodically uses derivative instruments to manage risk from changes in market conditions that may affect the Company’s financial performance. The Company has primarily used derivative instruments to manage its primary market risks, which are interest rate risk and foreign currency exchange rate risk.

The Company has periodically used forward currency exchange contracts to minimize the effects of foreign currency risk in the United Kingdom and Brazil. The forward currency exchange contracts are non-designated derivatives. Any gain or loss resulting from these contracts is recorded as income or loss and is included in “Foreign currency transaction gain” in the Company’s consolidated statements of income. As of March 31, 2018, the Company did not manage its exposure to risk from foreign currency exchange rate fluctuations through the use of forward currency exchange contracts in the United Kingdom or Brazil.

The Company had no outstanding derivative instruments as of March 31, 2018 and 2017.

The following table presents information related to the Company’s derivative instruments as of December 31, 2017 (in thousands):

Non-designated derivatives:

 

 

 

As of December 31, 2017

 

 

 

 

 

 

 

Gross Amounts

 

 

Gross Amounts

 

 

Net Amounts of Assets

 

 

 

 

 

 

 

of Recognized

 

 

Offset in the

 

 

Presented in the

 

 

 

Notional

 

 

Financial

 

 

Consolidated

 

 

Consolidated Balance

 

Forward currency exchange contracts

 

Amount

 

 

Instruments

 

 

Balance Sheets(1)

 

 

Sheets(2)

 

Assets

 

$

 

 

$

 

 

$

 

 

$

 

Liabilities

 

$

12,039

 

 

$

55

 

 

$

 

 

$

55

 

 

(1)

As of December 31, 2017, the Company had no gross amounts of recognized derivative instruments that the Company makes an accounting policy election not to offset. In addition, there was no financial collateral related to the Company’s derivatives. The Company has no assets or liabilities that are subject to an enforceable master netting agreement or similar arrangement.

(2)

Represents the fair value of forward currency contracts, which is recorded in “Accounts payable and accrued expenses” in the consolidated balance sheets.

The following table presents information on the effect of derivative instruments on the consolidated results of operations and accumulated other comprehensive income (“AOCI”) for the three months ended March 31, 2018 and 2017 (dollars in thousands):

 

 

 

Gains (Losses)

 

 

 

 

 

 

 

 

 

 

Gains (Losses)

 

 

 

Recognized in

 

 

Gains (Losses)

 

 

Reclassified From

 

 

 

Income

 

 

Recognized in AOCI

 

 

AOCI into Income

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

March 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Non-designated derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward currency exchange contracts(1)

 

$

243

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Total

 

$

243

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

(1)

The gains (losses) on these derivatives substantially offset the (losses) gains on the economically hedged portion of the foreign intercompany balances.