Derivative Financial Instruments

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Exchange Rate Exposure

The Company uses forward foreign currency exchange contracts to hedge certain operational exposures resulting from potential changes in foreign currency exchange rates. Such exposures result from portions of the Company’s forecasted cash flows being denominated in currencies other than the U.S. dollar, primarily the Euro and British Pound. The derivative instruments the Company uses to hedge this exposure are not designated as cash flow hedges, and as a result, changes in their fair value are recorded in interest and other income, net, on the Company's Condensed Consolidated Statements of Operations and Comprehensive Loss.

The fair values of forward foreign currency exchange contracts are estimated using current exchange rates and interest rates and take into consideration the current creditworthiness of the counterparties. Information regarding the specific instruments used by the Company to hedge its exposure to foreign currency exchange rate fluctuations is provided below.

The following table summarizes the Company’s forward foreign currency exchange contracts outstanding as of March 31, 2020 and December 31, 2019, respectively (notional amounts in thousands):


Foreign Exchange Contracts	Number of Contracts	Aggregate Notional⁽¹⁾Amount in Foreign Currency	Maturity
Euros	26	2,746	Apr 2020 - Feb 2021
British Pounds	17	2,482	Apr 2020 - Feb 2021
Swiss Francs	5	34	Apr 2020 - Aug 2020
Total at March 31, 2020	48
Euros	23	1,500	Jan 2020 - Nov 2020
British Pounds	15	2,285	Jan 2020 - Jun 2020
Swiss Francs	10	129	Jan 2020 - Aug 2020
Total at December 31, 2019	48

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⁽¹⁾The notional amount represents the net amount of foreign currency that will be received upon maturity of the forward contracts.