DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 2021

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 three-months ended March 31, 2021 and the year-ended December 31, 2020, 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 March 31, 2021 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:

March 31, 2021
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive USD/pay EUR	$	23,478	$	132	Accounts receivable, net
Receive USD/pay AUD		8,153		24	Accounts receivable, net
Receive USD/pay DKK		1,655		15	Accounts receivable, net
Receive USD/pay SEK		1,747		2	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	52,556	$	(166)	Accrued liabilities
Receive USD/pay COP		6,921		(115)	Accrued liabilities
Receive RSD/pay USD		10,747		(94)	Accrued liabilities
Receive USD/pay RUB		8,946		(51)	Accrued liabilities
Receive USD/pay CNY		12,183		(30)	Accrued liabilities
Receive USD/pay ZAR		360		(4)	Accrued liabilities
Receive USD/pay NOK		1,482		(3)	Accrued liabilities
Receive USD/pay NZD		4,128		(1)	Accrued liabilities
Receive SGD/pay USD		19,248		(1)	Accrued liabilities

December 31, 2020
Derivatives not designated as
hedging instruments under	Notional		Fair
FASB ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive SGD/pay USD	$	18,713	$	41	Accounts receivable, net
Receive RSD/pay USD		10,127		28	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts:
Receive EUR/pay USD	$	1,298,899	$	(1,768)	Accrued liabilities
Receive USD/pay GBP		35,256		(416)	Accrued liabilities
Receive USD/pay AUD		8,508		(130)	Accrued liabilities
Receive USD/pay ZAR		2,403		(106)	Accrued liabilities
Receive USD/pay COP		5,436		(93)	Accrued liabilities
Receive USD/pay CNY		12,344		(50)	Accrued liabilities
Receive USD/pay RUB		7,780		(40)	Accrued liabilities
Receive NOK/pay USD		4,411		(18)	Accrued liabilities
Receive USD/pay NZD		2,290		(13)	Accrued liabilities
Receive SEK/pay USD		2,275		(10)	Accrued liabilities
Receive USD/pay DKK		3,151		(3)	Accrued liabilities

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

		Amount of (loss) gain
		recognized in income on
		derivatives
Derivatives not designated as	Location of (loss) gain	Three-months ended
hedging instruments under	recognized in income on	March 31,		March 31,
ASC 815-20	derivatives	2021		2020
Foreign currency exchange contracts	Interest and other (expense) income, net	$	(3,870)	$	6,292