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, and Indian Rupee. 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.

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, 2015								December 31, 2014
	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	$	—	$	456	$	—	$	456	$	—	$	810	$	—	$	810

We held foreign currency exchange contracts which resulted in a net pre-tax loss of $0.2 million for the three months ended June 30, 2015 and a net pre-tax loss of $0.2 million for the three months ended June 30, 2014, respectively. For the six months ended June 30, 2015 and 2014, we had a net pre-tax gain of $0.9 million and a net pre-tax loss of $1.3 million, respectively.

Details of futures contracts held were as follows:



Date Held	Type	Position Held	Notional Value (in millions)		Forward Rate	Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands)⁽¹⁾			Settlement Date
June 30, 2015	USD/Euro	USD	$	6.0	1.1236	$	47		July 24, 2015
June 30, 2015	USD/Chinese Yuan Renminbi	Chinese Yuan Renminbi	$	22.5	6.2645	$	181		July 17, 2015
June 30, 2015	USD/Chinese Yuan Renminbi	USD	$	4.0	6.2355	$	(13	)	July 17, 2015
June 30, 2015	USD/Chinese Yuan Renminbi	USD	$	7.5	6.2473	$	(40	)	July 17, 2015
June 30, 2015	USD/Brazilian Real	USD	$	2.5	2.7690	$	281		July 17, 2015

December 31, 2014	USD/Euro	USD	$	5.0	1.2450	$	140		January 23, 2015
December 31, 2014	USD/Chinese Yuan Renminbi	Chinese Yuan Renminbi	$	20.0	6.2757	$	174		January 16, 2015
December 31, 2014	USD/Brazilian Real	USD	$	5.0	2.3401	$	609		January 16, 2015
December 31, 2014	USD/Brazilian Real	Brazilian Real	$	2.5	2.5442	$	(113	)	January 16, 2015


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