Foreign Currency Derivative Instruments

12 Months Ended

Dec. 31, 2015

Foreign Currency Derivatives [Abstract]

Foreign Currency Derivative Instruments

Foreign Currency Derivative Instruments

Maxwell uses forward contracts to hedge certain monetary assets and liabilities, primarily receivables and payables, and cash balances, denominated in foreign currencies. The change in fair value of these forward contracts represents a natural hedge as gains and losses on these instruments partially offset the changes in the fair value of the underlying monetary assets and liabilities due to movements in currency exchange rates. These forward contracts generally expire in one month. These contracts are considered economic hedges but are not designated as hedges under the Derivatives and Hedging Topic of the FASB ASC, therefore, the change in the fair value of the instruments is recognized currently in the consolidated statements of operations.

The net gains and losses on foreign currency forward contracts included in "foreign currency exchange loss, net" in the consolidated statements of operations are as follows (in thousands):

	Year Ended December 31,
	2015			2014			2013
Total gain (loss)	$	(720	)	$	(5,265	)	$	359

The net gains and losses on foreign currency derivative contracts were partially offset by net gains and losses on the underlying monetary assets and liabilities. Foreign currency gains and losses on those underlying monetary assets and liabilities included in "foreign currency exchange loss, net" in the consolidated statements of operations are as follows (in thousands):

	Year Ended December 31,
	2015		2014		2013
Total gain (loss)	$	179	$	4,391	$	(1,009	)

As of December 31, 2015, the total notional amount of foreign currency forward contracts not designated as hedges was $1.3 million.

The following table presents gross amounts, amounts offset and net amounts presented in the consolidated balance sheets for the Company's derivative instruments measured at fair value (in thousands):

	December 31, 2015			December 31, 2014
Gross amounts of recognized asset (liability)	$	66		$	(1,993	)
Gross amounts offset in the consolidated balance sheets	(50		)	350
Net amount of recognized asset (liability) presented in the consolidated balance sheets	$	16		$	(1,643	)

The Company has the legal right to offset these recognized assets and liabilities upon settlement of the derivative instruments. All of the forward contracts outstanding at December 31, 2015 matured on January 5, 2016 or February 2, 2016. For additional information, refer to Note 4, Fair Value Measurements.