Categories of Financial Assets and Financial Liabilities

12 Months Ended

Dec. 31, 2016

Categories of Financial Assets and Financial Liabilities

Financial Assets

The following schedules disclose our financial assets categories for the presented periods:



	Year Ended December 31, 2015
	Carrying Value		Loans and receivables		Fair value
	(in thousands)
Cash and cash equivalents	$	353,537	$	—	$	353,537
Trade receivables, net of allowances	261,581		261,581		$	261,581
Other taxes	29,552		29,552		$	29,552
Other current assets	16,030		16,030		$	16,030
Financial assets	17,184		17,184		$	17,184
Total	$	677,884	$	324,347	$	677,884



	Year Ended December 31, 2016
	Carrying Value		Loans and receivables		Fair value
	(in thousands)
Cash and cash equivalents	$	270,317	$	—	$	270,317
Trade receivables, net of allowances	397,244		397,244		$	397,244
Other taxes	52,942		52,942		$	52,942
Other current assets	19,340		19,340		$	19,340
Financial assets	17,029		17,029		$	17,029
Total	$	756,872	$	486,555	$	756,872

Credit Risk

The maximum exposure to credit risk at the end of each reported period is represented by the carrying amount of financial assets, and summarized in the following table:



	Year Ended December 31,
	2015		2016
	(in thousands)
Cash and cash equivalents	$	353,537	$	270,317
Trade receivables, net of allowances	261,581		397,244
Other taxes	29,552		52,942
Other current assets	16,030		19,340
Non-current financial assets	17,184		17,029
Total	$	677,884	$	756,872

As of December 31, 2016 and 2015, no customer accounted for 10% or more of trade receivables.

We perform ongoing credit evaluations of our customers and do not require collateral. We maintain an allowance for estimated credit losses. During the years ended December 31, 2016 and 2015, our net change in allowance for doubtful accounts was $5.4 million and $2.3 million, respectively.

Trade Receivables

Credit risk is defined as an unexpected loss in cash and earnings if the client is unable to pay its obligations in due time. We perform internal ongoing credit risk evaluations of our clients. When a possible risk exposure is identified, we require prepayments.

For each period presented, the aging of trade receivables and allowances for doubtful accounts is as follows:



	Year Ended December 31,
	2015									2016
	Gross value		%		Allowance			%		Gross value		%		Allowance			%
	(in thousands)				(in thousands)					(in thousands)				(in thousands)

Not yet due	$	193,603	72.2	%	$	—		—	%	$	265,600	65.0	%	$	—		—	%
0 - 30 days	$	53,803	20.1	%	$	—		—	%	$	92,163	22.5	%	$	(49	)	0.4	%
31 - 60 days	$	8,287	3.1	%	$	—		—	%	$	19,747	4.8	%	$	(182	)	1.6	%
61 - 90 days	$	2,574	1.0	%	$	(2	)	—	%	$	6,055	1.5	%	$	(191	)	1.6	%
> 90 days	$	9,578	3.6	%	$	(6,262	)	100.0	%	$	25,277	6.2	%	$	(11,176	)	96.4	%
Total	$	267,845	100.0	%	$	(6,264	)	100.0	%	$	408,842	100.0	%	$	(11,598	)	100.0	%

Cash and Cash Equivalents

Cash and cash equivalents are exclusively invested in secure investments such as interest-bearing term deposits.

Financial Liabilities



	Year Ended December 31, 2015
	Carrying Value		Fair value
	(in thousands)
Trade payables	$	246,382	$	246,382
Other taxes	30,463		30,463
Employee - related payables	42,275		42,275
Other current liabilities	15,531		15,531
Financial liabilities	10,428		10,428
of which derivative financial instruments	553		553
Total	$	345,079	$	345,079



	Year Ended December 31, 2016
	Carrying Value		Fair value
	(in thousands)
Trade payables	$	365,788	$	365,788
Other taxes	44,831		44,831
Employee - related payables	55,874		55,874
Other current liabilities	30,221		30,221
Financial liabilities	85,580		85,580
of which derivative financial instruments	1,968		$	1,968
Total	$	582,294	$	582,294

Fair Value Measurements

We measure the fair value of our cash equivalents, which include money market funds and interest bearing deposits, as level 1 and level 2 measurements because they are valued using quoted market prices and observable market data, respectively.

Financial liabilities include derivative financial instruments used to manage our exposure to the risk of exchange rate fluctuations. These instruments are considered level 2 financial instruments as they are measured using valuation techniques based on observable market data.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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