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Foreign Exchange Risk Management
 12 Months Ended
Dec. 31, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Foreign Exchange Risk Management

15. FOREIGN EXCHANGE RISK MANAGEMENT

In order to minimize earnings and cash flow volatility resulting from currency exchange rate changes, on occasion we enter into derivative instruments, principally forward and option foreign currency contracts. These contracts are designed to hedge anticipated foreign currency transactions and changes in the value of specific assets, liabilities and probable commitments. We do not enter into currency exchange rate derivative instruments for speculative purposes.  

The free-standing derivative forward contracts are used to offset our exposure to the change in value of specific foreign currency denominated assets and liabilities. These derivatives are not designated as hedges. Changes in the value of these contracts are recognized in earnings, thereby offsetting the current earnings effect of the related change in functional currency value of foreign currency denominated assets and liabilities. The gross notional amount of these contracts outstanding was of $118.6 million at December 31, 2015, $124.3 million December 31, 2014 and $236.0 million at December 31, 2013.

The cash flow settlements from these derivative contracts are primarily reported within investing activities in the consolidated statements of cash flows.

We recognized $50.3 million of gains in 2015, $2.8 million of gains in 2014 and $7.1 million of losses in 2013 from these forward contracts, included within gain (loss) loss on derivatives in the consolidated statements of operations.  The gains and losses from these forward contracts are offset by foreign exchange transaction losses of $22.4 million that were recognized in 2015, $4.2 million of losses that were recognized in 2014 and $2.8 million of gains that were recognized in 2013.  Foreign exchange transaction gains and losses are included within miscellaneous, net in our consolidated statements of operations.