Derivatives

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

    From time to time we enter into short-duration foreign currency forward derivative contracts to reduce the risk of foreign currency fluctuations. We use these instruments to mitigate our exposure to non-local currency operating working capital. We record these contracts at fair value on our condensed consolidated balance sheets. Although the derivative contracts will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they are not formally designated as hedge contracts for hedge accounting treatment. Accordingly, any changes in the fair value of the derivative instruments during a period will be included in our condensed consolidated statements of operations.

    As of September 30, 2020, we had no foreign currency derivative contracts outstanding. As of December 31, 2019, we had the following foreign currency derivative contracts outstanding in U.S. dollars (in thousands):

	December 31, 2019
Derivative Contracts	Notional Amount		Contractual Exchange Rate	Settlement Date
Canadian dollar	$	948	1.3182	3/16/2020
Euro	9,279		1.1180	3/17/2020
Norwegian krone	11,027		9.0688	3/17/2020
Pound sterling	16,057		1.3381	3/17/2020

    The following table summarizes the location and fair value amounts of all derivative contracts in the condensed consolidated balance sheets as of December 31, 2019 (in thousands):

Derivatives not Designated as Hedging Instruments	Consolidated Balance Sheet Location	December 31, 2019
Foreign currency contracts	Accounts payable and accrued liabilities	$	(324)

    The following table summarizes the location and amounts of the realized and unrealized gains and losses on derivative contracts in the condensed consolidated statements of operations (in thousands):

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
Derivatives not Designated as Hedging Instruments	Location of Gain Recognized in Income on Derivative Contracts	2020		2019		2020		2019
Unrealized gain on foreign currency contracts	Other income, net	$	—	$	553	$	—	$	349
Realized gain on foreign currency contracts	Other income, net	—		1,059		1,475		1,471
Total net gain on foreign currency contracts		$	—	$	1,612	$	1,475	$	1,820

    Our derivative transactions are governed through International Swaps and Derivatives Association master agreements. These agreements include stipulations regarding the right of offset in the event that we or our counterparty default on our performance obligations. If a default were to occur, both parties have the right to net amounts payable and receivable into a single net settlement between parties. Our accounting policy is to offset derivative assets and liabilities executed with the same counterparty when a master netting arrangement exists.

    The following table presents the gross and net fair values of our derivatives at December 31, 2019 (in thousands):

	Derivative Asset Positions		Derivative Liability Positions
	December 31, 2019		December 31, 2019
Gross position - asset / (liability)	$	127	$	(451)
Netting adjustment	(127)		127
Net position - asset / (liability)	$	—	$	(324)