DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Sep. 30, 2020

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

7. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the nine-months ended September 30, 2020 and the year-ended December 31, 2019, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of September 30, 2020 have terms of one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company has not designated its foreign currency exchange contracts as hedge transactions under ASC 815. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other (expense) income, net, in the condensed consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item.

The notional amount and fair value of all outstanding foreign currency derivative instruments in the condensed consolidated balance sheets consist of the following at:

September 30, 2020
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive SGD/pay USD	$	13,748	$	90	Accounts receivable, net
Receive RSD/pay USD		14,253		63	Accounts receivable, net
Receive NOK/pay USD		2,579		32	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	51,990	$	(282)	Accrued liabilities
Receive USD/pay EUR		35,815		(182)	Accrued liabilities
Receive USD/pay RUB		9,343		(162)	Accrued liabilities
Receive USD/pay AUD		9,448		(145)	Accrued liabilities
Receive USD/pay CNY		11,915		(70)	Accrued liabilities
Receive USD/pay COP		4,670		(61)	Accrued liabilities
Receive USD/pay ZAR		1,542		(39)	Accrued liabilities
Receive USD/pay NZD		1,247		(11)	Accrued liabilities
Receive USD/pay DKK		1,367		(3)	Accrued liabilities

December 31, 2019
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	26,731	$	246	Accounts receivable, net
Receive RSD/pay USD		9,018		59	Accounts receivable, net
Receive NOK/pay USD		2,122		17	Accounts receivable, net
Receive USD/pay SGD		1,555		7	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	38,406	$	(695)	Accrued liabilities
Receive USD/pay AUD		12,819		(172)	Accrued liabilities
Receive USD/pay RUB		12,777		(55)	Accrued liabilities
Receive USD/pay NZD		3,071		(33)	Accrued liabilities
Receive USD/pay ZAR		3,349		(32)	Accrued liabilities
Receive USD/pay COP		3,793		(18)	Accrued liabilities
Receive USD/pay DKK		1,283		(11)	Accrued liabilities

The net gains on derivative instruments in the condensed consolidated statements of income were as follows:

		Amount of gain
		recognized in income on
		derivatives
Derivatives not designated as	Location of gain	Three-months ended
hedging instruments under	recognized in income on	September 30,		September 30,
ASC 815-20	derivatives	2020		2019
Foreign currency exchange contracts	Interest and other (expense) income, net	$	260	$	627

		Amount of gain
		recognized in income on
		derivatives
Derivatives not designated as	Location of gain	Nine-months ended
hedging instruments under	recognized in income on	September 30,		September 30,
ASC 815-20	derivatives	2020		2019
Foreign currency exchange contracts	Interest and other (expense) income, net	$	4,318	$	475