Derivative Financial Instruments

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Company utilizes cash flow hedges to mitigate its currency risk arising from its global delivery resources. As of June 30, 2019, the Company has recorded $1.1 million of existing gains in accumulated other comprehensive income and estimates that $1.1 million of gains reported in accumulated other comprehensive income are expected to be reclassified into earnings within the next 6 months. The amounts related to derivatives designated as cash flow hedges that were reclassified into cost of services were a net gain of $0.4 million and $0.5 million during the three and six month period ended June 30, 2019, and a net loss of $0.3 million and $0.4 million during the three and six month period ended June 30, 2018. The Company classifies cash flows from its derivative programs as cash flows from operating activities in the consolidated statements of cash flows. As of June 30, 2019, the Company’s currency forward contracts have maturities extending no later than December 31, 2019.

As of June 30, 2019 and December 31, 2018, the notional amount of the Company's open foreign currency forward contracts was approximately $26.2 million and $52.0 million, respectively. As of June 30, 2019, the Company held no derivatives, or non-derivative hedging instruments, that were designated in fair value or net investment hedges. Fair values for derivative financial instruments are based on prices computed using third-party valuation models and are classified as Level 2 in accordance with the three-level hierarchy of fair value measurements.