Derivative Instruments

12 Months Ended

Dec. 31, 2021

Derivative Instruments [Abstract]

Derivative Instruments

14.  Derivative Instruments

In the normal course of business, our operations are exposed to fluctuations in foreign currency values and interest rate changes. We may seek to control a portion of these risks through a risk management program that includes the use of derivative instruments.

Foreign Currency Risk Management

Our 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 our 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.

We utilize foreign currency exchange contracts to manage market risks associated with fluctuations in foreign currency exchange rates and to minimize credit exposure by limiting counterparties to nationally recognized financial institutions.

As of December 31, 2021, we had no foreign exchange contracts outstanding.

Interest Rate Risk Management

For the periods presented, we did not elect to designate any of our derivative contracts as hedges. Changes in the fair value of the derivative contracts are included in loss on derivative instruments, net in the consolidated statements of operations.

For the years ended December 31, 2021 and 2020, we recognized a net (loss) gain on its derivative instruments as outlined below:

	Years ended December 31,
(in thousands)	2021		2020
Foreign exchange contracts- change in fair value	$	-	$	17
Interest rate swap - change in fair value		-		(49	)
Remeasurement of related contract receivables and billings in excess of revenue earned		19		15
	$	19	$	(17	)