Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Cash Flow Hedges

As of March 31, 2018, the Company's cash flow hedge instruments had maturity dates ranging from April 2018 to December 2019 as follows (in thousands):

	Notional Amount		Fair Value (1)			Accumulated Other Comprehensive Income (Loss) (2) (3)
Derivative assets	$	136,820	$	1,207		$	815
Derivative liabilities	457,124		(34,097		)	(38,512		)
Total	$	593,944	$	(32,890	)	$	(37,697	)

⁽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 $34.0 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, 2017, the Company's cash flow hedge instruments had maturity dates ranging from January 2018 to October 2019 as follows (in thousands):

	Notional Amount		Fair Value (1)			Accumulated Other Comprehensive Income (Loss) (2) (3)
Derivative assets	$	72,262	$	2,379		$	2,055
Derivative liabilities	440,637		(29,777		)	(34,311		)
Total	$	512,899	$	(27,398	)	$	(32,256	)

⁽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 $26.7 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 March 31, 2018 (in thousands):

	Gross Amounts		Gross Amounts Offset in the Consolidated Balance Sheet		Net Consolidated Balance Sheet Amounts(1)		Gross Amounts not Offset in the Consolidated Balance Sheet(2)			Net
Assets:
Designated as hedging instruments:
Foreign currency forward contracts designated as cash flow hedges	$	1,207	$	—	$	1,207	$	(1,207	)	$	—
Not designated as hedging instruments:
Embedded derivatives	3,911		—		3,911		—			3,911
Economic hedges of embedded derivatives	403		—		403		—			403
Foreign currency forward contracts	3,464		—		3,464		—			3,464
	7,778		—		7,778		—			7,778
Additional netting benefit	—		—		—		(3,867		)	(3,867		)
	$	8,985	$	—	$	8,985	$	(5,074	)	$	3,911
Liabilities:
Designated as hedging instruments:
Foreign currency forward contracts designated as cash flow hedges	$	34,097	$	—	$	34,097	$	(1,207	)	$	32,890
Not designated as hedging instruments:
Embedded derivatives	4,703		—		4,703		—			4,703
Economic hedges of embedded derivatives	18		—		18		—			18
Foreign currency forward contracts	1,166		—		1,166		—			1,166
	5,887		—		5,887		—			5,887
Additional netting benefit	—		—		—		(3,867		)	(3,867		)
	$	39,984	$	—	$	39,984	$	(5,074	)	$	34,910

⁽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. For presentation on the condensed consolidated balance sheets, the Company does not offset fair value amounts recognized for derivative instruments under master netting arrangements.

The following table presents the fair value of derivative instruments recognized in the Company's condensed consolidated balance sheets as of December 31, 2017 (in thousands):

	Gross Amounts		Gross Amounts Offset in the Consolidated Balance Sheet		Net Consolidated Balance Sheet Amounts(1)		Gross Amounts not Offset in the Consolidated Balance Sheet(2)			Net
Assets:
Designated as hedging instruments:
Foreign currency forward contracts designated as cash flow hedges	$	2,379	$	—	$	2,379	$	(2,379	)	$	—
Not designated as hedging instruments:
Embedded derivatives	5,076		—		5,076		—			5,076
Economic hedges of embedded derivatives	325		—		325		—			325
Foreign currency forward contracts	505		—		505		(340		)	165
	5,906		—		5,906		(340		)	5,566
Additional netting benefit	—		—		—		(490		)	(490		)
	$	8,285	$	—	$	8,285	$	(3,209	)	$	5,076
Liabilities:
Designated as hedging instruments:
Foreign currency forward contracts designated as cash flow hedges	$	29,777	$	—	$	29,777	$	(2,379	)	$	27,398
Not designated as hedging instruments:
Embedded derivatives	3,503		—		3,503		—			3,503
Economic hedges of embedded derivatives	20		—		20		—			20
Foreign currency forward contracts	7,547		—		7,547		(340		)	7,207
	11,070		—		11,070		(340		)	10,730
Additional netting benefit	—		—		—		(490		)	(490		)
	$	40,847	$	—	$	40,847	$	(3,209	)	$	37,638

⁽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. For presentation on the condensed consolidated balance sheets, the Company does not offset fair value amounts recognized for derivative instruments under master netting arrangements.