Market Risks and Derivative Hedge Contracts

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements [Abstract]

Hedge Contracts

NOTE E – MARKET RISKS AND DERIVATIVE CONTRACTS

We are exposed to financial and market risks that affect our businesses. We have currency exchange rate risk exposure related to transactions denominated in a foreign currency as well as to investments in certain of our international operations. As a result of our variable rate bank credit facilities, including the variable rate credit facility of CCLP, we face market risk exposure related to changes in applicable interest rates. We have concentrations of credit risk as a result of trade receivables owed to us by companies in the energy industry. Our financial risk management activities may at times involve, among other measures, the use of derivative financial instruments, such as swap and collaragreements, to hedge the impact of market price risk exposures.

Derivative Contracts

Foreign Currency Derivative Contracts. As of June 30, 2015, we and CCLP had the following foreign currency derivative contracts outstanding relating to portions of our foreign operations:

Derivative Contracts	US Dollar Notional Amount		Traded Exchange Rate	Settlement Date
	(In Thousands)
Forward purchase Euro	$	2,403	1.12	7/17/2015
Forward purchase pounds sterling	$	7,491	1.57	7/17/2015
Forward sale Canadian dollar	$	2,918	1.25	7/17/2015
Forward sale Mexican peso	$	7,617	15.71	7/17/2015
Forward sale Norwegian krone	$	1,640	7.84	7/17/2015
Forward sale Saudi Arabia Riyal	$	1,000	3.75	7/17/2015
Forward sale Canadian dollar	$	780	1.25	7/17/2015
Forward sale Mexican peso	$	2,066	15.71	7/17/2015

Under a program designed to mitigate the currency exchange rate risk exposure on selected transactions of certain foreign subsidiaries, we and CCLP may enter into similar derivative contracts from time to time. Although contracts pursuant to this program will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they will not be formally designated as hedge contracts or qualify for hedge accounting treatment. Accordingly, any change in the fair value of these derivative instruments during a period will be included in the determination of earnings for that period.

The fair value of foreign currency derivative instruments are based on quoted market values as reported to us by our counterparty (a level 2 fair value measurement). The fair values of our and CCLP's foreign currency derivative instruments as of June 30, 2015 and December 31, 2014, are as follows:

Foreign currency derivative instruments	Balance Sheet Location	Fair Value at June 30, 2015			Fair Value at December 31, 2014
		(In Thousands)
Forward purchase contracts	Current assets	$	128		$	—
Forward sale contracts	Current liabilities	(115		)	(91		)
Forward purchase contracts	Current liabilities	(30		)	(83		)
Net liability		$	(17	)	$	(174	)

None of the foreign currency derivative contracts contain credit risk related contingent features that would require us to post assets or collateral for contracts that are classified as liabilities. During the three and six month periods ended June 30, 2015, we recognized approximately $0.2 million and $0.3 million, respectively, of net gains in other income (expense) associated with our foreign currency derivative program.