7.DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the three- months ended March 31, 2019 and the year-ended December 31, 2018, 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 March 31, 2019 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 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:


March 31, 2019
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	43,540	$	176	Accounts receivable, net
Receive USD/pay COP		3,445		5	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts:
Receive USD/pay ZAR	$	12,030	$	(138)	Accrued liabilities
Receive USD/pay AUD		16,025		(99)	Accrued liabilities
Receive EUR/pay USD		25,470		(61)	Accrued liabilities
Receive SGD/pay USD		9,389		(12)	Accrued liabilities
Receive USD/pay NZD		2,106		(4)	Accrued liabilities


December 31, 2018
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive SGD/pay USD	$	8,341	$	30	Accounts receivable, net
Receive NOK/pay USD		902		13	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	40,648	$	(323)	Accrued liabilities
Receive USD/pay AUD		15,124		(105)	Accrued liabilities
Receive USD/pay ZAR		8,618		(68)	Accrued liabilities
Receive USD/pay COP		2,931		(33)	Accrued liabilities
Receive USD/pay NZD		2,952		(4)	Accrued liabilities
Receive USD/pay EUR		6,894		(2)	Accrued liabilities

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


		Amount of loss
		recognized in income on
		derivatives
Derivatives not designated as	Location of loss	Three-months ended
hedging instruments under	recognized in income on	March 31,		March 31,
ASC 815-20	derivatives	2019		2018
Foreign currency exchange contracts	Interest and other income, net	$	1,087	$	4,659