DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2017

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

5.DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the six-months ended June 30, 2017 and the year ended December 31, 2016, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of June 30, 2017 have terms of one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company has not designated its foreign currency exchange contracts as hedge transactions under ASC 815. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other (expense) income, net, in the condensed consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item.

The notional amount and fair value of all outstanding foreign currency derivative instruments in the condensed consolidated balance sheets consist of the following at:

June 30, 2017
Derivatives not designated as hedging instruments under FASB ASC 815-20	Notional Amount		Fair Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive CAD/pay USD	$	20,193	$	104	Accounts receivable, net
Receive USD/pay ZAR	20,664		365		Accounts receivable, net
Receive USD/pay MXN	19,948		336		Accounts receivable, net
Receive SGD/pay USD	10,091		7		Accounts receivable, net
Receive USD/pay BRL	4,589		25		Accounts receivable, net
Receive USD/pay CLP	4,747		2		Accounts receivable, net
Receive USD/pay COP	1,906		14		Accounts receivable, net
Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	17,728	$	(118)	Accrued liabilities
Receive USD/pay EUR	19,834		(62)		Accrued liabilities
Receive USD/pay AUD	24,791		(186)		Accrued liabilities
Receive USD/pay NZD	1,971		(5)		Accrued liabilities

December 31, 2016
Derivatives not designated as hedging instruments under FASB ASC 815-20	Notional Amount		Fair Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive CAD/pay USD	$	22,314	$	173	Accounts receivable, net
Receive SGD/pay USD	7,915		24		Accounts receivable, net
Receive NOK/pay USD	2,138		28		Accounts receivable, net
Receive USD/pay CLP	4,094		9		Accounts receivable, net
Receive USD/pay COP	2,330		2		Accounts receivable, net
Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	7,718	$	(57)	Accrued liabilities
Receive USD/pay EUR	29,621		(325)		Accrued liabilities
Receive USD/pay AUD	15,135		(74)		Accrued liabilities
Receive USD/pay ZAR	20,405		(296)		Accrued liabilities
Receive USD/pay MXN	25,864		(4)		Accrued liabilities
Receive USD/pay BRL	3,138		(3)		Accrued liabilities
Receive USD/pay NZD	2,076		(5)		Accrued liabilities

The net (losses) gains on derivative instruments in the condensed consolidated statements of income were as follows:

		Amount of (loss) gain recognized in income on derivatives
		Three-months ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of (loss) gain recognized in income on derivatives	June 30, 2017		June 30, 2016
Foreign currency exchange contracts	Interest and other (expense) income, net	$	(4,439)	$	141

		Amount of (loss) gain recognized in income on derivatives
		Six-months ended
Derivatives not designated as hedging instruments under FASB ASC 815-20	Location of (loss) gain recognized in income on derivatives	June 30, 2017		June 30, 2016
Foreign currency exchange contracts	Interest and other (expense) income, net	$	(9,467)	$	458