Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

The Company is exposed to certain risks related to its ongoing business operations, including market risks related to fluctuation in currency exchange. The Company uses foreign exchange contracts to manage the risk of certain cross-currency business relationships to minimize the impact of currency exchange fluctuations on the Company’s earnings and cash flows. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. As of and for the period ended September 30, 2015, the foreign exchange contracts designated as hedging instruments did not have a material impact on the Company’s condensed consolidated statements of operations, balance sheet or cash flows. Foreign exchange contracts not designated as hedging instruments, which primarily pertain to foreign exchange fluctuation risk of intercompany positions, had a notional value of $42 million and $216 million as of September 30, 2015 and December 31, 2014, respectively. The settlement of derivative contracts for the three months ended September 30, 2015 and 2014 resulted in net cash inflow (outflow) of $0.2 million and $(7.1) million, respectively, and is reported within other in “Total used for operating activities” on the Condensed Consolidated Statements of Cash Flows. As of September 30, 2015 and December 31, 2014, the Company's receivable position for the foreign exchange contracts was $0.2 million and $31 thousand, respectively. As of September 30, 2015 and December 31, 2014, the Company's payable position for the foreign exchange contracts was $0.2 million and $2.5 million, respectively.