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Derivative Instruments
 6 Months Ended
Jun. 30, 2014
Derivative Instruments [Abstract]  
Derivative Instruments
8.Derivative Instruments

The Company utilizes forward foreign currency exchange contracts to manage market risks associated with the fluctuations in foreign currency exchange rates.  It is the Company's policy to use such derivative financial instruments to protect against market risk arising in the normal course of business in order to reduce the impact of these exposures.  The Company minimizes credit exposure by limiting counterparties to nationally recognized financial institutions.

As of June 30, 2014, the Company had foreign exchange contracts outstanding of approximately 0.1 million Pounds Sterling and 1.3 million Euro at fixed rates.  The contracts expire on various dates through May 2016.  At December 31, 2013, the Company had contracts outstanding of approximately 0.2 million Pounds Sterling, 13.3 million Euro, and 10.1 million Japanese Yen at fixed rates.

The Company has not designated any of the foreign exchange contracts outstanding as hedges and has recorded the estimated fair value of the contracts in the consolidated balance sheets as follows:

 
 
June 30,
  
December 31,
 
(in thousands)
 
2014
  
2013
 
 
 
  
 
Asset derivatives
 
  
 
Prepaid expenses and other current assets
 
$
3
  
$
140
 
Other assets
  
-
   
2
 
 
  
3
   
142
 
Liability derivatives
        
Other current liabilities
  
(37
)
  
(637
)
Other liabilities
  
(11
)
  
(18
)
 
  
(48
)
  
(655
)
 
        
Net fair value
 
$
(45
)
 
$
(513
)

The changes in the fair value of the foreign exchange contracts are included in net gain (loss) on derivative instruments in the consolidated statements of operations.

The foreign currency denominated contract receivables, billings in excess of revenue earned and subcontractor accruals that are related to the outstanding foreign exchange contracts are remeasured at the end of each period into the functional currency using the current exchange rate at the end of the period.  The gain or loss resulting from such remeasurement is also included in net gain on derivative instruments in the consolidated statements of operations.

For the three and six months ended June 30, 2014 and 2013, the Company recognized a net gain (loss) on its derivative instruments as outlined below:

 
 
Three Months ended
June 30,
  
Six Months ended
June 30,
 
(in thousands)
 
2014
  
2013
  
2014
  
2013
 
 
 
  
  
  
 
Foreign exchange contracts- change in fair value
 
$
11
  
$
(548
)
 
$
254
  
$
1
 
Remeasurement of related contract receivables,
 billings in excess of revenue earned, and
 subcontractor accruals
  
(6
)
  
138
   
(145
)
  
(144
)
 
                
Gain (loss) on derivative instruments, net
 
$
5
  
$
(410
)
 
$
109
  
$
(143
)