8. Financial Instruments

The following financial instrument assets (liabilities) are presented at their respective carrying amount, fair value and classification within the fair value hierarchy:



	June 30, 2015
	Carrying		Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Cash and cash equivalents	$	211,413	$	211,413	$	211,413	$	—	$	—
Loans payable		(3,442)		(3,442)		—		(3,442)		—
Term loan facility		(297,750)		(308,929)		—		(308,929)		—
Revolving credit line		(105,000)		(105,211)		—		(105,211)		—
Other long-term notes payable		(3,089)		(2,522)		—		(2,522)		—
Foreign currency forward contracts, net		439		439		—		439		—



	December 31, 2014
	Carrying		Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Cash and cash equivalents	$	140,500	$	140,500	$	140,500	$	—	$	—
Loans payable		(4,284)		(4,284)		—		(4,284)		—
Term loan facility		(299,250)		(310,453)		—		(310,453)		—
Other long-term notes payable		(3,504)		(2,861)		—		(2,861)		—
Foreign currency forward contracts, net		713		713		—		713		—

The fair values of cash and cash equivalents are based on the fair values of identical assets. The fair values of loans payable are based on the present value of expected future cash flows and approximate their carrying amounts due to the short periods to maturity. The fair values of the term loan facility, the revolving credit line and other long-term notes payable are based on the present value of expected future cash flows and interest rates that would be currently available to the Company for issuance of similar types of debt instruments with similar terms and remaining maturities adjusted for the Company's non-performance risk.

Foreign currency forward contracts. We manage foreign currency risks principally by entering into forward contracts to mitigate the impact of currency fluctuations on transactions. These forward contracts are not formally designated as hedges. Gains and losses on these foreign currency forward contracts are netted with gains and losses from currency fluctuations on transactions arising from international trade and reported as Foreign currency losses, net in the condensed consolidated statements of operations. We recognized net foreign currency losses of $2.8 million and $4.6 million in the three and six months ended June 30, 2015, respectively, and net foreign currency losses of approximately $0.0 million and $1.4 million in the three and six months ended June 30, 2014, which is primarily comprised of the foreign exchange impact on transactions in countries where it is not economically feasible for us to enter into hedging arrangements and hedging inefficiencies, such as timing of transactions. We recognized net losses of $0.3 million and net gains of $1.3 million in the three and six months ended June 30, 2015 and net losses of $0.1 million and net gains of $2.3 million in the three and six months ended June 30, 2014, respectively, arising from the change in fair value of our financial instruments, which offset the related net gains and losses on international trade transactions. The fair values of these contracts are based on market prices for comparable contracts. The notional amount of foreign currency forward contracts was $268.0 million at June 30, 2015, and $145.9 million at December 31, 2014.

The following table presents the effect on our condensed consolidated statements of operations for the three and six months ended June 30, 2015 and 2014, respectively, of our foreign currency forward contracts:



	Amount of (Loss)
	Recognized in Earnings
	Three Months Ended
	June 30,
	2015		2014		Location of Loss in Earnings
	(Dollars in thousands)
Foreign currency forward contracts	$	(317)	$	(94)	Foreign currency losses, net



	Amount of Gain
	Recognized in Earnings

	Six Months Ended
	June 30,

	2015		2014		Location of Gain in Earnings

	(Dollars in thousands)
Foreign currency forward contracts	$	1,328	$	2,307	Foreign currency losses, net

The following table presents the fair values on our condensed consolidated balance sheets of foreign currency forward contracts:



	June 30,		December 31,
	2015		2014		Balance Sheet Location
	(Dollars in thousands)
Asset derivatives:
Foreign currency forward contracts	$	1,107	$	1,599	Other current assets
Liability derivatives:
Foreign currency forward contracts	$	(668)	$	(886)	Accrued expenses and other current liabilities