5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the years ended December 31, 2018, 2017 and 2016, respectively, 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 entered into by the Company that were outstanding as of December 31, 2018 have terms of three months 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 FASB ASC 815. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in other income (expense), net, in the 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 consolidated balance sheets consist of the following at:


December 31, 2018
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	$	8,341	$	30	Accounts receivable, net
Receive NOK/pay USD		902		13	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	40,648	$	(323)	Accrued liabilities
Receive USD/pay AUD		15,124		(105)	Accrued liabilities
Receive USD/pay ZAR		8,618		(68)	Accrued liabilities
Receive USD/pay COP		2,931		(33)	Accrued liabilities
Receive USD/pay NZD		2,952		(4)	Accrued liabilities
Receive USD/pay EUR		6,894		(2)	Accrued liabilities


December 31, 2017
Derivatives not designated as
hedging instruments under	Notional		Fair
FASB ASC 815-20	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive CAD/pay USD	$	4,892	$	61	Accounts receivable, net
Receive SGD/pay USD		223		2	Accounts receivable, net
Receive NOK/pay USD		1,534		18	Accounts receivable, net
Receive USD/pay BRL		1,806		1	Accounts receivable, net
Receive USD/pay COP		2,803		13	Accounts receivable, net

Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	31,342	$	(334)	Accrued liabilities
Receive USD/pay EUR		65,131		(642)	Accrued liabilities
Receive USD/pay AUD		17,238		(177)	Accrued liabilities
Receive USD/pay ZAR		21,311		(222)	Accrued liabilities
Receive USD/pay MXN		7,720		(126)	Accrued liabilities
Receive USD/pay NZD		1,826		(18)	Accrued liabilities
Receive USD/pay TRY		5,483		(52)	Accrued liabilities
Receive USD/pay CLP		1,112		(8)	Accrued liabilities

The net gain (loss) on derivative instruments in the consolidated statements of income were as follows:


		Amount of gain (loss)
		recognized in income on
		derivatives
Derivatives not designated as	Location of gain (loss)	Year ended
hedging instruments under	recognized in income on	December 31,		December 31,		December 31,
FASB ASC 815-20	derivatives	2018		2017		2016
Foreign currency exchange contracts	Other income (expense), net	$	9,737	$	(13,733)	$	1,819