Cash Flow Hedges – The Company has derivative assets and liabilities relating to outstanding forward contracts and options, designated as cash flow hedges, as defined under ASC 815, Derivatives and Hedging (“ASC 815”), consisting of Philippine Peso, Costa Rican Colon, Hungarian Forint and Romanian Leu contracts. These foreign currency contracts are entered into to hedge the exposure to variability in the cash flows of a specific asset or liability, or of a forecasted transaction that is attributable to changes in exchange rates.

The deferred gains (losses) and related taxes on the Company’s cash flow hedges recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands):

	March 31, 2020			December 31, 2019
Deferred gains (losses) in AOCI	$	976		$	2,221
Tax on deferred gains (losses) in AOCI		(28	)		69
Deferred gains (losses) in AOCI, net of taxes	$	948		$	2,290
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months	$	976

Deferred gains (losses) and other future reclassifications from AOCI will fluctuate with movements in the underlying market price of the forward contracts and options as well as the related settlement of forecasted transactions.

Foreign Currency Forward Contracts – The Company also periodically enters into foreign currency hedge contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against adverse foreign currency moves relating primarily to intercompany receivables and payables, and other assets and liabilities that are denominated in currencies other than the Company’s subsidiaries’ functional currencies.

The Company had the following outstanding foreign currency forward contracts and options (in thousands):

March 31, 2020

December 31, 2019

Contract Type

Notional

Amount

in USD

Settle

Through

Date

Notional

Amount

in USD

Settle

Through

Date

Cash flow hedges:

Options:

US Dollars/Philippine Pesos

70,000

December 2020

74,000

December 2020

Forwards:

US Dollars/Costa Rican Colones

45,000

December 2020

42,000

December 2020

Euros/Hungarian Forints

2,575

December 2020

—

Euros/Romanian Leis

10,951

December 2020

—

Non-designated hedges:

Forwards

11,102

November 2021

19,295

November 2021

Master netting agreements exist with each respective counterparty to reduce credit risk by permitting net settlement of derivative positions. In the event of default by the Company or one of its counterparties, these agreements include a set-off clause that provides the non-defaulting party the right to net settle all derivative transactions, regardless of the currency and settlement date. The maximum amount of loss due to credit risk that, based on gross fair value, the Company would incur if parties to the derivative transactions that make up the concentration failed to perform according to the terms of the contracts was $2.5 million and $3.6 million as of March 31, 2020 and December 31, 2019, respectively. After consideration of these netting arrangements and offsetting positions by counterparty, the total net settlement amount as it relates to these positions are asset positions of $2.0 million and $3.4 million as of March 31, 2020 and December 31, 2019, respectively, and liability positions of $0.2 million and $0 as of March 31, 2020 and December 31, 2019, respectively.

Although legally enforceable master netting arrangements exist between the Company and each counterparty, the Company has elected to present the derivative assets and derivative liabilities on a gross basis in the accompanying Condensed Consolidated Balance Sheets. Additionally, the Company is not required to pledge, nor is it entitled to receive, cash collateral related to these derivative transactions.

The following tables present the fair value of the Company’s derivative instruments included in the accompanying Condensed Consolidated Balance Sheets (in thousands):

		Derivative Assets
	Balance Sheet Location	March 31, 2020		December 31, 2019
Derivatives designated as cash flow hedging instruments:
Foreign currency contracts	Other current assets	$	2,281	$	3,051
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets		121		322
Foreign currency contracts	Deferred charges and other assets		108		234
Total derivative assets		$	2,510	$	3,607

		Derivative Liabilities
	Balance Sheet Location	March 31, 2020		December 31, 2019
Derivatives designated as cash flow hedging instruments:
Foreign currency contracts	Other accrued expenses and current liabilities	$	652	$	138
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other accrued expenses and current liabilities		45		113
Total derivative liabilities		$	697	$	251

The following table presents the effect of the Company’s derivative instruments included in the accompanying condensed consolidated financial statements (in thousands):

	Location of Gains	Three Months Ended March 31,
	(Losses) in Net Income	2020			2019
Revenues		$	411,166		$	402,925

Derivatives designated as cash flow hedging instruments:
Gains (losses) recognized in AOCI:
Foreign currency contracts			(311	)		1,183
Gains (losses) reclassified from AOCI:
Foreign currency contracts	Revenues		926			(501	)
Derivatives not designated as hedging instruments:
Gains (losses) recognized from foreign currency contracts	Other income (expense), net	$	(246	)	$	(33	)