12.	Derivative Instruments

The Company utilizes forward foreign currency exchange contracts to manage market risks associated with the fluctuations in foreign currency exchange rates and minimize credit exposure by limiting counterparties to nationally recognized financial institutions.

As of March 31, 2018, the Company had foreign exchange contracts outstanding of approximately 162.5 million Japanese Yen and 0.2 million Australian Dollars at fixed rates. The contracts expire on various dates through December 2018. At December 31, 2017, the Company had contracts outstanding of approximately 162.5 million Japanese Yen, 24,000 Euro, and 0.2 million Australian Dollars at fixed rates.

The Company has not designated the foreign exchange contracts as hedges and recorded the estimated net fair values of the contracts on the consolidated balance sheets as follows:

	March 31,		December 31,
(in thousands)	2018		2017

Asset derivatives
Prepaid expenses and other current assets	$	83	$	201
Net fair value	$	83	$	201

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

For the three months ended March 31, 2018 and 2017, the Company recognized a net loss on its derivative instruments as outlined below:

	Three months ended March 31,
(in thousands)	2018		2017

Foreign exchange contracts - change in fair value	$	(118)	$	(86)
Remeasurement of related contract receivables, and billings in excess of revenue earned		(38)		(74)
Loss on derivative instruments, net	$	(156)	$	(160)