Derivatives

We periodically enter into foreign currency exchange contracts with terms normally lasting less than nine months to protect against the adverse effects that exchange-rate fluctuations may have on our foreign currency-denominated receivables, payables, cash flows and reported income. We are exposed to market risks from foreign currency exchange rates, which may adversely affect our operating results and financial position. Our foreign currency exposures are primarily concentrated in the Argentinian Peso, Brazilian Real, British Pound, Chinese Yuan Renminbi, Euro, Hong Kong Dollar, Indian Rupee, and Singapore Dollar. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. We do not use leveraged derivative financial instruments and these derivatives have not qualified for hedge accounting.

The gains and losses on the derivatives are recorded in other income (expense), net. Derivatives are recorded on the balance sheet at fair value. The estimated fair values of our derivative financial instruments represent the amount required to enter into offsetting contracts with similar remaining maturities based on quoted market prices. We have determined that the fair value of our derivatives are derived from level 2 inputs in the fair value hierarchy. The following table sets forth the total net fair value of derivatives:



	June 30, 2014										December 31, 2013
	Fair Value Measurement Using							Total			Fair Value Measurement Using						Total
(In thousands)	(Level 1)		(Level 2)			(Level 3)		Balance			(Level 1)		(Level 2)		(Level 3)		Balance
Foreign currency exchange futures contracts	$	—	$	(1,177	)	$	—	$	(1,177	)	$	—	$	509	$	—	$	509

We held foreign currency exchange contracts which resulted in a net pre-tax loss of $0.2 million and $0.1 million for the three months ended June 30, 2014 and 2013, respectively. For the six months ended June 30, 2014 and 2013, we had a net pre-tax loss of $1.3 million and $0.3 million, respectively.

Details of futures contracts held were as follows:



Date Held	Type	Position Held	Notional Value (in millions)		Forward Rate	Gain/(Loss) Recorded at Balance Sheet Date (in thousands)⁽¹⁾			Settlement Date
June 30, 2014	USD/Euro	Euro	$	2.5	1.3606	$	17		August 1, 2014
June 30, 2014	USD/Chinese Yuan Renminbi	Chinese Yuan Renminbi	$	25.0	6.0461	$	(676	)	July 18, 2014
June 30, 2014	USD/Brazilian Real	USD	$	5.0	2.4530	$	(518	)	July 18, 2014
December 31, 2013	USD/Euro	Euro	$	11.0	1.3782	$	(2	)	January 31, 2014
December 31, 2013	USD/Chinese Yuan Renminbi	Chinese Yuan Renminbi	$	15.0	6.2047	$	358		January 15, 2014
December 31, 2013	USD/Brazilian Real	USD	$	3.0	2.3442	$	34		January 17, 2014
December 31, 2013	USD/Brazilian Real	USD	$	2.0	2.2301	$	119		January 17, 2014


⁽¹⁾	Gains on futures contracts are recorded in prepaid expenses and other current assets. Losses on futures contracts are recorded in other accrued expenses.