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):

	June 30, 2021			December 31, 2020
Deferred gains (losses) in AOCI	$	(1,017	)	$	(2,188	)
Tax on deferred gains (losses) in AOCI		3			(3	)
Deferred gains (losses) in AOCI, net of taxes	$	(1,014	)	$	(2,191	)
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months	$	(869	)

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 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):

	June 30, 2021			December 31, 2020
Contract Type	Notional Amount in USD		Settle Through Date	Notional Amount in USD		Settle Through Date
Cash flow hedges:
Options:
US Dollars/Philippine Pesos	$	40,000	April 2022	$	12,000	June 2021
Forwards:
US Dollars/Philippine Pesos	$	2,000	August 2021		—		—
US Dollars/Costa Rican Colones		34,000	August 2022		36,000	December 2021
Euros/Hungarian Forints		1,138	December 2021		—		—
Euros/Romanian Leis		7,514	December 2021		—		—
Non-designated hedges:
Forwards	$	8,693	November 2021	$	12,439	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 $0.6 million and $0.3 million as of June 30, 2021 and December 31, 2020, 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 $0.5 million and $0.3 million as of June 30, 2021 and December 31, 2020, respectively, and liability positions of $1.0 million and $2.4 million as of June 30, 2021 and December 31, 2020, 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	June 30, 2021		December 31, 2020
Derivatives designated as cash flow hedging instruments:
Foreign currency contracts	Other current assets	$	341	$	154
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets		276		183
Total derivative assets		$	617	$	337

		Derivative Liabilities
	Balance Sheet Location	June 30, 2021		December 31, 2020
Derivatives designated as cash flow hedging instruments:
Foreign currency contracts	Other accrued expenses and current liabilities	$	905	$	2,253
Foreign currency contracts	Other long-term liabilities		148		—
			1,053		2,253
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other accrued expenses and current liabilities		23		225
Total derivative liabilities		$	1,076	$	2,478

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 (Losses) in	Three Months Ended June 30,						Six Months Ended June 30,
	Net Income	2021			2020			2021			2020
Revenues		$	448,885		$	416,833		$	906,771		$	827,999

Derivatives designated as cash flow hedging instruments:
Gains (losses) recognized in AOCI:
Foreign currency contracts		$	(504	)	$	1,179			(296	)		868
Gains (losses) reclassified from AOCI:
Foreign currency contracts	Revenues	$	(676	)	$	1,438			(1,433	)		2,364
Derivatives not designated as hedging instruments:
Gains (losses) recognized from foreign currency contracts	Other income (expense), net	$	(42	)	$	(164	)	$	(7	)	$	(410	)