Derivative Financial Instruments

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

The Company transacts business in various foreign countries and is therefore exposed to foreign currency exchange rate risk that impacts the reported U.S. Dollar amounts of revenues, costs, and certain foreign currency monetary assets and liabilities. In order to manage exposure to fluctuations in foreign currency and to reduce the volatility in cash flows and earnings caused by fluctuations in foreign exchange rates, the Company enters into forward contracts to buy and sell foreign currency. By policy, the Company does not enter into these contracts for trading purposes or speculation.

Counterparty default risk is considered low because the forward contracts that the Company enters into are over-the-counter instruments transacted with highly-rated financial institutions. The Company was not required and did not post collateral as of December 31, 2016 and 2015.

The Company's derivative instruments are recorded at fair value as a derivative asset or liability in the consolidated balance sheets. The Company reports derivative instruments with the same counterparty on a net basis when a master netting arrangement is in place. Changes in fair value are recognized within 'Foreign currency loss, net' in the consolidated statements of operations. For purposes of the cash flow statement, the Company classifies cash flows from derivative instruments at settlement in the same category as the cash flows from the related hedged items, generally within 'Cash provided by (used in) operating activities'.

Results of Derivative Activities

The fair values of derivative assets and liabilities, which are reported within 'Accrued expenses and other liabilities' in the consolidated balance sheets were:

	December 31, 2016						December 31, 2015
	Derivative Assets			Derivative Liabilities			Derivative Assets		Derivative Liabilities
	(in thousands)
Forward foreign exchange contracts
Level 1	$	—		$	—		$	—	$	—
Level 2	6,541			(6,698		)	—		(55		)
Level 3	—			—			—		—
	6,541			(6,698		)	—		(55		)
Netting of counterparty contracts	(6,541		)	6,541			—		—
Foreign exchange derivative liabilities	$	—		$	(157	)	$	—	$	(55	)

The notional amounts of outstanding foreign currency forward exchange contracts shown below report the total U.S. Dollar equivalent position of all contracts for each foreign currency position.

	December 31, 2016					December 31, 2015
	Notional		Fair Value			Notional		Fair Value
Singapore Dollar	$	94,763	$	(2,611	)	$	—	$	—
Japanese Yen	87,171		4,180			98,390		—
Euro	71,228		(1,441		)	34,219		—
British Pound Sterling	14,332		(660		)	21,859		—
Other currencies	60,727		375			39,923		(55		)
	$	328,221	$	(157	)	$	194,391	$	(55	)
Latest maturity date	January 2017					January 2016

Amounts reported within 'Foreign currency loss, net' in the consolidated statements of operations include both realized and unrealized gains/losses from foreign currency transactions and derivative contracts, and are as follows:

	Year Ended December 31,
	2016			2015			2014
	(in thousands)
Foreign currency transaction gain (loss)	$	10,814		$	3,980		$	(1,097	)
Foreign currency loss on foreign currency forward contracts	(13,268		)	(7,312		)	(3,788		)
Foreign currency loss, net	$	(2,454	)	$	(3,332	)	$	(4,885	)