Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of cash flow hedges

As of September 30, 2016, the Company’s cash flow hedges had maturity dates ranging from October 2016 to September 2018 as follows (in thousands):

	Notional Amount		Fair Value (1)			Accumulated other comprehensive income (loss) (2) (3)
Derivative assets	$	388,269	$	25,353		$	53,713
Derivative liabilities	167,706		(3,750		)	(33,791		)
	$	555,975	$	21,603		$	19,922

⁽¹⁾  All derivative assets related to cash flow hedges are included in the condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.

⁽²⁾  Included in the condensed consolidated balance sheets within accumulated other comprehensive income (loss).

⁽³⁾  The Company recorded a net gain of $13,994 within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenue and expenses as they mature in the next 12 months.

As of December 31, 2015, the Company’s cash flow hedges had maturities dates ranging from January 2016 to December 2017 as follows (in thousands):

	Notional Amount		Fair Value (1)			Accumulated other comprehensive income (loss) (2)(3)
Derivative assets	$	367,330	$	16,027		$	34,578
Derivative liabilities	47,447		(813		)	(19,709		)
	$	414,777	$	15,214		$	14,869

⁽¹⁾  All derivative assets related to cash flow hedges are included in the condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.

⁽²⁾  Included in the condensed consolidated balance sheets within accumulated other comprehensive income (loss).

⁽³⁾  The Company recorded a net gain of $12,940 within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenue and expense as they mature over the next 12 months.

Schedule of fair value of derivative instruments recognized in consolidated balance sheets

The following table presents the fair value of derivative instruments recognized in the Company’s condensed consolidated balance sheets as of September 30, 2016 (in thousands):

	Gross Amounts		Gross amounts offset in the balance sheet		Net amounts (1)		Gross amounts not offset in the balance sheet (2)			Net
Assets:
Designated as hedging instruments:
Cash flow hedges
Foreign currency forward and option contracts	$	25,353	$	—	$	25,353	$	(3,385	)	$	21,968
Net Investment Hedges
Foreign currency forward contracts	60		—		60		—			60
	25,413		—		25,413		(3,385		)	22,028
Not designated as hedging instruments:
Embedded derivatives	3,587		—		3,587		—			3,587
Economic hedges of embedded derivatives	234		—		234		(17		)	217
Foreign currency forward contracts	70		—		70		—			70
	3,891		—		3,891		(17		)	3,874
Additional netting benefit	—		—		—		(2,621		)	(2,621		)
	$	29,304	$	—	$	29,304	$	(6,023	)	$	23,281
Liabilities:
Designated as hedging instruments
Cash flow hedges
Foreign currency forward contracts	$	3,750	$	—	$	3,750	$	(3,385	)	$	365
Net Investment Hedges
Foreign currency forward contracts	—		—		—		—			—
	3,750		—		3,750		(3,385		)	365
Not designated as hedging instruments:
Embedded derivatives	3,245		—		3,245		—			3,245
Economic hedges of embedded derivatives	75		—		75		(17		)	58
Foreign currency forward contracts	3,210		—		3,210		—			3,210
	6,530		—		6,530		(17		)	6,513
Additional netting benefit	—		—		—		(2,621		)	(2,621		)
	$	10,280	$	—	$	10,280	$	(6,023	)	$	4,257

⁽¹⁾  As presented in the Company’s condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.

⁽²⁾  The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default.

The following table presents the fair value of derivative instruments recognized in the Company’s condensed consolidated balance sheets as of December 31, 2015 (in thousands):

	Gross Amounts		Gross amounts offset in the balance sheet		Net balance sheet amounts (1)		Gross amounts not offset in the balance sheet (2)			Net
Assets:
Designated as hedging instruments:
Foreign currency forward and option contracts	$	16,027	$	—	$	16,027	$	(813	)	$	15,214
Not designated as hedging instruments:
Embedded derivatives	8,926		—		8,926		—			8,926
Economic hedges of embedded derivatives	744		—		744		—			744
Foreign currency forward contracts	43,203		—		43,203		(34,577		)	8,626
	52,873		—		52,873		(34,577		)	18,296
Additional netting benefit	—		—		—		(9,512		)	(9,512		)
	$	68,900	$	—	$	68,900	$	(44,902	)	$	23,998
Liabilities:
Designated as hedging instruments:
Foreign currency forward and option contracts	$	813	$	—	$	813	$	(813	)	$	—
Not designated as hedging instruments:
Embedded derivatives	1,772		—		1,772		—			1,772
Economic hedges of embedded derivatives	417		—		417		—			417
Foreign currency forward contracts	76,923		—		76,923		(34,577		)	42,346
	79,112		—		79,112		(34,577		)	44,535
Additional netting benefit	—		—		—		(9,512		)	(9,512		)
	$	79,925	$	—	$	79,925	$	(44,902	)	$	35,023

⁽¹⁾  As presented in the Company’s condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.

⁽²⁾  The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default.