Derivative Financial Instruments

Foreign Currency Exchange Rate Risk

The Company enters into foreign currency forward contracts not formally designated as hedges to manage the consolidated exchange rate risk associated with the remeasurement of non-functional currency denominated monetary assets and liabilities. Changes in fair value of foreign currency forward contracts are recognized in income at the end of each reporting period based on the difference between the contract rate and the spot rate. In general, these gains and losses are offset in the Consolidated Statements of Income by the reciprocal gains and losses from the underlying assets or liabilities which originally gave rise to the exposure. The net amount of the gains and losses related to derivative instruments recorded in other income, net for the three months ended March 31, 2018 and 2017 were net losses of $4.7 million and $1.0 million, respectively.

The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency (in thousands):



	March 31,		December 31,
	2018		2017
European euro	$	119,216	$	34,800
British pound sterling	20,392		34,317
Canadian dollar	17,863		7,426
Swedish kroner	12,467		59,373
Brazilian real	7,708		7,794
Norwegian kroner	6,499		3,095
Australian dollar	768		2,817
Japanese yen	239		3,362
	$	185,152	$	152,984

At March 31, 2018, the Company’s foreign currency forward contracts, in general, had maturities of three months or less.

Note 6. Derivative Financial Instruments - (Continued)

Foreign Currency Exchange Rate Risk - (Continued)

The carrying amounts of the foreign exchange contracts included in the Consolidated Balance Sheets are as follows (in thousands):



	March 31, 2018				December 31, 2017
	Prepaid Expenses and Other Current Assets		Other Current Liabilities		Prepaid Expenses and Other Current Assets		Other Current Liabilities
Foreign exchange contracts	$	78	$	2,623	$	1,760	$	579