DERIVATIVES (TABLES)

9 Months Ended

Sep. 30, 2017

Schedule of Cash Flow Hedges OCI Rollforward

The following table summarizes the aggregate unrealized net gain or loss in Accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2017 and 2016 (in thousands and net of tax):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016

Aggregate unrealized net gain/(loss) at beginning of period	$	(19,730)	$	(25,007)	$	(32,393)	$	(26,885)
Add: Net gain/(loss) from change in fair value of cash flow hedges		5,420		631		25,290		9,519
Less: Net (gain)/loss reclassified to earnings from effective hedges		(3,487)		(4,179)		(10,694)		(11,189)
Aggregate unrealized net gain/(loss) at end of period	$	(17,797)	$	(28,555)	$	(17,797)	$	(28,555)

Schedule of Notional Amounts of Outstanding Cash Flow Hedges

The Company’s foreign exchange cash flow hedging instruments as of September 30, 2017 and December 31, 2016 are summarized as follows (amounts in thousands). All hedging instruments are forward contracts.

Local

Currency

U.S. Dollar

% Maturing

Contracts

Notional

in the next

Maturing

As of September 30, 2017

Amount

12 months

Through

Philippine Peso

10,490,000

218,413

(1)

53.2

August 2021

Mexican Peso

1,774,000

104,652

37.2

May 2021

323,065


	Local
	Currency	U.S. Dollar
	Notional	Notional
As of December 31, 2016	Amount	Amount
Philippine Peso	14,315,000		301,134	(1)
Mexican Peso	2,089,000		129,375
		$	430,509

⁽¹⁾

Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on September 30, 2017 and December 31, 2016.

Schedule of Interest Rate Swaps

Contract

Notional

Variable Rate

Fixed Rate

Commencement

Maturity

December 31, 2016

Amount

Received

Paid

Date

Swap

15 million

1 - month LIBOR

3.14

May 2012

May 2017

Schedule of Derivatives Instruments on Balance Sheet

The Company’s derivatives as of September 30, 2017 and December 31, 2016 were as follows (in thousands):


	September 30, 2017
	Designated				Not Designated
	as Hedging				as Hedging
Designation:	Instruments				Instruments
	Foreign		Interest		Foreign
Derivative contract type:	Exchange		Rate		Exchange
Derivative classification:	Cash Flow		Cash Flow		Fair Value

Fair value and location of derivative in the Consolidated Balance Sheet:
Prepaids and other current assets	$	55	$	—	$	355
Other long-term assets		594		—		—
Other current liabilities		(17,071)		—		(447)
Other long-term liabilities		(13,051)		—		—
Total fair value of derivatives, net	$	(29,473)	$	—	$	(92)


	December 31, 2016
	Designated				Not Designated
	as Hedging				as Hedging
Designation:	Instruments				Instruments
	Foreign		Interest		Foreign
Derivative contract type:	Exchange		Rate		Exchange
Derivative classification:	Cash Flow		Cash Flow		Fair Value

Fair value and location of derivative in the Consolidated Balance Sheet:
Prepaids and other current assets	$	1,178	$	—	$	1,606
Other long-term assets		—		—		—
Other current liabilities		(23,503)		(147)		(866)
Other long-term liabilities		(31,714)		—		—
Total fair value of derivatives, net	$	(54,039)	$	(147)	$	740

Schedule of Derivative Impact on Statement of Comprehensive Income

The effects of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended September 30, 2017 and 2016 were as follows (in thousands):


	Three Months Ended September 30,
	2017				2016
	Designated as Hedging				Designated as Hedging
Designation:	Instruments				Instruments
	Foreign		Interest		Foreign		Interest
Derivative contract type:	Exchange		Rate		Exchange		Rate
Derivative classification:	Cash Flow		Cash Flow		Cash Flow		Cash Flow

Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax	$	(3,487)	$	—	$	(4,119)	$	(60)

Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion:
Revenue	$	(5,812)	$	—	$	(7,103)	$	—
Interest expense		—		—		—		(104)


	Three Months Ended September 30,
	2017				2016
Designation:	Not Designated as Hedging Instruments				Not Designated as Hedging Instruments
Derivative contract type:	Foreign Exchange				Foreign Exchange

Derivative classification:	Forward Contracts		Fair Value		Forward Contracts		Fair Value

Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss):
Costs of services	$	—	$	—	$	—	$	—
Other income (expense), net	$	—	$	(1,186)	$	—	$	(3,674)

The effects of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2017 and 2016 were as follows (in thousands):


	Nine Months Ended September 30,
	2017				2016
	Designated as Hedging				Designated as Hedging
Designation:	Instruments				Instruments
	Foreign		Interest		Foreign		Interest
Derivative contract type:	Exchange		Rate		Exchange		Rate
Derivative classification:	Cash Flow		Cash Flow		Cash Flow		Cash Flow

Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax	$	(10,625)	$	(69)	$	(10,939)	$	(252)

Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion:
Revenue	$	(17,709)	$	—	$	(18,860)	$	—
Interest expense		—		(115)		—		(435)


	Nine Months Ended September 30,
	2017				2016
Designation:	Not Designated as Hedging Instruments				Not Designated as Hedging Instruments
Derivative contract type:	Foreign Exchange				Foreign Exchange

Derivative classification:	Forward Contracts		Fair Value		Forward Contracts		Fair Value

Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss):
Costs of services	$	—	$	—	$	—	$	—
Other income (expense), net	$	—	$	(1,545)	$	—	$	(3,616)