We are exposed to certain risks arising from both our business operations and economic conditions. Refer to Note 13 to the consolidated financial statements included in our Form 10-K for further discussion of our risk management objectives and policies.

The Company does not generally elect to apply the hedge accounting designation to its hedging instruments. As of June 30, 2019 and December 31, 2018, the Company did not have any designated hedges. As of June 30, 2018, the Company had one interest rate swap that had been designated as a cash flow hedge of the interest rate risk associated with forecasted interest payments. During the three and six months ended June 30, 2018, the impact of this cash flow hedge on our net income was not material and we did not recognize any hedge ineffectiveness in earnings.

We have entered into the following types of non-designated hedges and derivatives:

The following table summarizes our non-designated derivatives as of June 30, 2019 (notional amounts in thousands):

The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 (amounts in thousands):

(1)	Classified as derivative assets in our condensed consolidated balance sheets.

(2)	Classified as derivative liabilities in our condensed consolidated balance sheets.

The tables below present the effect of our derivative financial instruments on the condensed consolidated statements of operations and of comprehensive income for the three and six months ended June 30, 2019 and 2018 (amounts in thousands):


		Amount of Gain (Loss)				Amount of Gain (Loss)
		Recognized in Income for the				Recognized in Income for the
Derivatives Not Designated	Location of Gain (Loss)	Three Months Ended June 30,				Six Months Ended June 30,
as Hedging Instruments	Recognized in Income	2019		2018		2019		2018
Interest rate contracts	(Loss) gain on derivative financial instruments	$	(10,077)	$	(128)	$	(13,835)	$	6,109
Interest rate swap guarantees	(Loss) gain on derivative financial instruments		(2,990)		—		(3,171)		—
Foreign exchange contracts	(Loss) gain on derivative financial instruments		13,245		32,818		15,689		9,675
Credit index instruments	(Loss) gain on derivative financial instruments		(210)		(68)		(922)		(21)
		$	(32)	$	32,622	$	(2,239)	$	15,763


			Gain (Loss)
	Gain (Loss)		Reclassified		Gain (Loss)
	Recognized		from AOCI		Recognized
Derivatives Designated as Hedging Instruments	in OCI		into Income		in Income		Location of Gain (Loss)
For the Three Months Ended June 30,	(effective portion)		(effective portion)		(ineffective portion)		Recognized in Income
2019	$	—	$	—	$	—	Interest expense
2018	$	(1)	$	22	$	—	Interest expense

For the Six Months Ended June 30,
2019	$	—	$	—	$	—	Interest expense
2018	$	8	$	26	$	—	Interest expense