Derivative Financial Instruments

9 Months Ended

Sep. 30, 2015

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

5. Derivative Financial Instruments

The majority of our travel programs historically took place outside of the United States, and most foreign suppliers required payment in currency other than the U.S. dollar. Accordingly, we have been exposed to foreign currency risk relative to changes in foreign currency exchange rates between those currencies and the U.S. dollar for our non-directly delivered programs. We have used forward contracts that allow us to acquire foreign currency at a fixed price for a specified point in time to provide a hedge against foreign currency risk. There were no derivative financial instruments outstanding at September 30, 2015.

For derivative instruments that were designated and qualified as a cash flow hedge, the effective portion of the gain or loss on the derivative was reported as a component of other comprehensive income or loss and reclassified into earnings in the same period during which the hedged transaction is recognized in earnings; primarily during the second and third quarters of the year when our student travel programs occurred. Gains or losses representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness were recognized in current earnings.

The fair value of our forward contracts at December 31, 2014 was as follows (in thousands):

	December 31, 2014
	Derivatives designated as hedging instruments				Total Net
	Assets		Liabilities		Liabilities
Forward contracts	$	14	$	1,359		$	1,345

The net asset and liability derivatives at December 31, 2014 were reported in the consolidated balance sheets as current and long-term foreign currency exchange contracts.