Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Cash Flow Hedges

As of June 30, 2017, the Company's cash flow hedge instruments had maturity dates ranging from July 2017 to June 2019 as follows (in thousands):

	Notional Amount		Fair Value (1)			Accumulated Other Comprehensive Income (Loss) (2) (3)
Derivative assets	$	177,873	$	10,284		$	9,375
Derivative liabilities	449,147		(18,049		)	(20,884		)
Total	$	627,020	$	(7,765	)	$	(11,509	)

⁽¹⁾  All derivatives 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 loss of $3.0 million within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenues and expenses as they mature in the next 12 months.

As of December 31, 2016, the Company's cash flow hedge instruments had maturity dates ranging from January 2017 to November 2018 as follows (in thousands):

	Notional Amount		Fair Value (1)			Accumulated Other Comprehensive Income (Loss) (2) (3)
Derivative assets	$	545,638	$	44,570		$	42,634
Derivative liabilities	42,207		(1,815		)	(1,453		)
Total	$	587,845	$	42,755		$	41,181

⁽¹⁾  All derivatives 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 $31.9 million within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenues and expenses 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 June 30, 2017 (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:
Foreign currency forward contracts designated as cash flow hedges	$	10,284	$	—	$	10,284	$	(10,284	)	$	—
Not designated as hedging instruments:
Embedded derivatives	5,695		—		5,695		—			5,695
Economic hedges of embedded derivatives	618		—		618		—			618
Foreign currency forward contracts	335		—		335		(335		)	—
	6,648		—		6,648		(335		)	6,313
Additional netting benefit	—		—		—		(618		)	(618		)
	$	16,932	$	—	$	16,932	$	(11,237	)	$	5,695
Liabilities:
Designated as hedging instruments
Foreign currency forward and option contracts designated as cash flow hedges	$	18,049	$	—	$	18,049	$	(10,284	)	$	7,765
Not designated as hedging instruments:
Embedded derivatives	4,096		—		4,096		—			4,096
Economic hedges of embedded derivatives	138		—		138		—			138
Foreign currency forward contracts	9,797		—		9,797		(335		)	9,462
	14,031		—		14,031		(335		)	13,696
Additional netting benefit	—		—		—		(618		)	(618		)
	$	32,080	$	—	$	32,080	$	(11,237	)	$	20,843

⁽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, 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	$	44,570	$	—	$	44,570	$	(1,815	)	$	42,755
Net investment hedges
Foreign currency forward contracts	6,930		—		6,930		(3,310		)	3,620
	51,500		—		51,500		(5,125		)	46,375
Not designated as hedging instruments:
Embedded derivatives	9,745		—		9,745		—			9,745
Foreign currency forward contracts	8,734		—		8,734		(1,873		)	6,861
	18,479		—		18,479		(1,873		)	16,606
Additional netting benefit	—		—		—		(2,436		)	(2,436		)
	$	69,979	$	—	$	69,979	$	(9,434	)	$	60,545
Liabilities:
Designated as hedging instruments:
Cash flow hedges
Foreign currency forward and option contracts	$	1,815	$	—	$	1,815	$	(1,815	)	$	—
Net investment hedges
Foreign currency forward contracts	3,525		—		3,525		(3,310		)	215
	5,340		—		5,340		(5,125		)	215
Not designated as hedging instruments:
Embedded derivatives	1,525		—		1,525		—			1,525
Economic hedges of embedded derivatives	866		—		866		—			866
Foreign currency forward contracts	3,228		—		3,228		(1,873		)	1,355
	5,619		—		5,619		(1,873		)	3,746
Additional netting benefit	—		—		—		(2,436		)	(2,436		)
	$	10,959	$	—	$	10,959	$	(9,434	)	$	1,525

⁽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.