Derivative Instruments and Hedging Activities

The Company enters into forward foreign exchange contracts to hedge its foreign currency exposures on future production expenses and tax credit receivables denominated in various foreign currencies. As of December 31, 2017, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 21 months from December 31, 2017):



December 31, 2017
Foreign Currency	Foreign Currency Amount			US Dollar Amount		Weighted Average Exchange Rate Per $1 USD
	(Amounts in millions)			(Amounts in millions)
British Pound Sterling		£3.3	in exchange for		$4.3	£0.78
Hungarian Forint	HUF 1,113.8		in exchange for		$4.1	HUF 272.18
Euro		€1.5	in exchange for		$1.7	€0.87
Canadian Dollar		C$15.0	in exchange for		$11.9	C$1.26

Changes in the fair value representing a net unrealized fair value loss on foreign exchange contracts that qualified as effective hedge contracts outstanding during the three and nine months ended December 31, 2017 were losses, net of tax, of $0.3 million and $0.5 million (2016 - $1.9 million and $4.9 million), and are included in accumulated other comprehensive loss, a separate component of shareholders’ equity. Changes in the fair value representing a net unrealized fair value loss on foreign exchange contracts that did not qualify as effective hedge contracts outstanding during the three and nine months ended December 31, 2017 were $0.2 million and nil, respectively (2016 - nil and loss of $0.4 million, respectively) and were included in direct operating expenses in the accompanying unaudited condensed consolidated statements of income. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions.

As of December 31, 2017, $1.0 million was included in other current assets and $1.7 million in accounts payable and accrued liabilities (March 31, 2017 - $0.6 million in other assets and $0.5 million in accounts payable and accrued liabilities) in the accompanying unaudited condensed consolidated balance sheets related to the Company's use of foreign currency derivatives. The Company classifies its forward foreign exchange contracts within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

During the three and nine months ended December 31, 2017, no amounts were reclassified out of accumulated other comprehensive loss into earnings. As of December 31, 2017, based on the current release schedule, the Company estimates approximately $0.8 million of gains associated with cash flow hedges in accumulated other comprehensive loss to be reclassified into earnings during the one-year period ending December 31, 2018.