NOTE N – MARKET RISKS AND DERIVATIVE AND HEDGE CONTRACTS

We are exposed to financial and market risks that affect our businesses. We have concentrations of credit risk as a result of trade receivables owed to us by companies in the energy industry. We have currency exchange rate risk exposure related to transactions denominated in a foreign currency as well as to investments in certain of our international operations. As a result of our variable rate bank credit facilities, including the variable rate credit facility of CCLP, we face market risk exposure related to changes in applicable interest rates. Our financial risk management activities may at times involve, among other measures, the use of derivative financial instruments, such as swap and collar agreements, to hedge the impact of market price risk exposures.

Derivative Contracts

Foreign Currency Derivative Contracts. We and CCLP enter into 30-day foreign currency forward derivative contracts as part of a program designed to mitigate the currency exchange rate risk exposure on selected transactions of certain foreign subsidiaries. As of December 31, 2015, we and CCLP had the following foreign currency derivative contracts outstanding relating to a portion of our foreign operations:



Derivative Contracts	US Dollar Notional Amount		Traded Exchange Rate	Settlement Date
	(In Thousands)
Forward purchase euro	$	3,768	1.11	1/19/2016
Forward purchase pounds sterling	$	12,614	1.52	1/19/2016
Forward purchase Mexican peso	$	7,850	17.45	1/19/2016
Forward purchase Saudi Arabia riyal	$	5,040	3.74	1/5/2016
Forward sale Mexican peso	$	4,641	17.45	1/19/2016

As of December 31, 2014, we and CCLP had the following foreign currency derivative contracts outstanding relating to a portion of our foreign operations:



Derivative Contracts	US Dollar Notional Amount		Traded Exchange Rate	Settlement Date
	(In Thousands)
Forward purchase pounds sterling	$	7,024	1.57	1/16/2015
Forward sale Brazilian real	$	1,958	2.70	1/16/2015
Forward sale Canadian dollar	$	3,770	1.16	1/16/2015
Forward purchase Mexican peso	$	8,427	14.58	1/16/2015
Forward sale Canadian dollar	$	1,150	1.16	1/16/2015

Under this program, we and CCLP may enter into similar derivative contracts from time to time. Although contracts pursuant to this program will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they are not formally designated as hedge contracts or qualify for hedge accounting treatment. Accordingly, any change in the fair value of these derivative instruments during a period will be included in the determination of earnings for that period.

The fair value of foreign currency derivative instruments are based on quoted market values as reported to us by our counterparty (a Level-2 measurement). The fair values of our foreign currency derivative instruments as of December 31, 2015 and 2014, are as follows:



Foreign currency derivative instruments	Balance Sheet Location	Fair Value at December 31, 2015			Fair Value at December 31, 2014
		(In Thousands)
Forward purchase contracts	Current assets	$	—		$	—
Forward sale contracts	Current assets	23			—
Forward sale contracts	Current liabilities	(31		)	(91		)
Forward purchase contracts	Current liabilities	(354		)	(83		)
Total		$	(362	)	$	(174	)

None of the foreign currency derivative contracts contain credit risk related contingent features that would require us to post assets or collateral for contracts that are classified as liabilities. During the year ended December 31, 2015, 2014, and 2013, we recognized approximately $0.6 million, $1.9 million and $0.03 million of net losses reflected in other expense associated with our foreign currency derivative program.