Derivative Contracts

We use forward exchange contracts to hedge certain of our foreign currency transaction exposures. We estimate our projected revenues and purchases in certain foreign currencies and locations and may hedge a portion of the anticipated long or short positions. The contracts typically run from one month up to eighteen months. As of June 30, 2017, we did not have any derivatives designated as hedging instruments; therefore, our forward foreign exchange contracts have been marked-to-market and the fair value of contracts recorded in the consolidated Balance Sheet with the offsetting non-cash gain or loss recorded in cost of revenue in our consolidated Statement of Income. We do not hold or issue foreign exchange options or forward contracts for trading purposes. Our forward foreign exchange contracts are subject to a master netting agreement. We record assets and liabilities relating to our forward foreign exchange contracts on a gross basis in our consolidated Balance Sheet.

The following table summarizes the notional amount of our open foreign exchange contracts:



	June 30, 2017				December 31, 2016
	U.S. $ Equivalent		U.S. $ Equivalent Fair Value		U.S. $ Equivalent		U.S. $ Equivalent Fair Value
Commitments to buy or sell currencies	$	11,040	$	11,674	$	18,593	$	17,213

We consider the impact of our credit risk on the fair value of the contracts, as well as our ability to honor obligations under the contract.

During the three months ended June 30, 2017, the Company entered into an interest rate swap contract to fix the interest rate on an initial aggregate amount of $80.0 million thereby reducing its exposure to interest rate changes. The interest rate swap has a floor rate of 2.07% and an all-in rate of 8.07%. The interest rate swap has an effective date of June 30, 2017 and a maturity date of April 30, 2022. As of June 30, 2017, the interest rate swap contract was not designated as a hedging instrument; therefore, our interest rate swap contract has been marked-to-market and the fair value of the contract recorded in the consolidated Balance Sheet with the offsetting gain or loss recorded in interest and other expense in our consolidated Statement of Income.

The following table summarizes the fair value and presentation in the consolidated Balance Sheet for derivatives, none of which are designated as accounting hedges:



	Asset Derivatives
	June 30, 2017			December 31, 2016
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Other current assets	$	723	Other current assets	$	142
Interest rate swap contract¹	Other current assets	3		Other current assets	—
Interest rate swap contract¹	Other assets, net	377		Other assets, net	—



	Liability Derivatives
	June 30, 2017			December 31, 2016
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Accrued liabilities	$	55	Accrued liabilities	$	1,234
Interest rate swap contract¹	Accrued liabilities	569		Accrued liabilities	—
Interest rate swap contract¹	Other long-term liabilities	334		Other long-term liabilities	—

¹ Presented in the condensed consolidated Balance Sheet as accrued liabilities of $0.5 million.

The following table summarizes the effect of derivative instruments on the consolidated Statement of Income for derivatives not designated as hedging instruments:



		Three Months Ended June 30,				Six Months Ended June 30,
		2017		2016		2017		2016
	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives				Amount of Gain (Loss) Recognized in Income on Derivatives
Foreign exchange contracts	Cost of Revenues	$	204	$	491	$	1,759	$	659
Interest rate swap contract	Interest Expense	$	523	$	—	$	523	$	—