The following tables present the effect of cash flow hedge accounting on our unaudited condensed consolidated statements of operations and comprehensive income, and provide information regarding the location and amounts of pretax gains or losses of derivatives (in thousands):



		Three Months Ended September 30,
		2018		2017


Financial statement line items in which effects of cash flow hedges are recorded	Cost of revenue	$	239,805	$	217,974
Foreign exchange contracts
Amount of gain (loss) reclassified from accumulated other comprehensive income into income		$	256	$	(893	)



		Nine Months Ended September 30,
		2018			2017


Financial statement line items in which effects of cash flow hedges are recorded	Cost of revenue	$	722,675		$	638,029
Foreign exchange contracts
Amount of (loss) gain reclassified from accumulated other comprehensive income into income		$	(2,412	)	$	935

Fair Values of Hedging Instruments Designated as Hedges in Consolidated Balance Sheets

The fair values of hedging instruments and their respective classification on our unaudited condensed consolidated balance sheets and amounts subject to offset under master netting arrangements consisted of the following derivative instruments, unless otherwise noted (in thousands):



		Hedging Assets
		September 30, 2018		December 31, 2017

Derivatives and non-derivatives designated as hedging instruments	Balance Sheet Classification
Foreign currency exchange contracts	Other current assets	$	4,469	$	477
Cross currency swaps	Other current assets	148		—
Foreign currency exchange contracts	Other long-term assets	1,339		—
Total derivative instruments presented as cash flow hedges on the balance sheet		5,956		477
Gross amounts subject to master netting arrangements not offset on the balance sheet		419		477
Net amount		$	5,537	$	—

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		Hedging Liabilities
		September 30, 2018		December 31, 2017

Derivatives and non-derivatives designated as hedging instruments	Balance Sheet Classification
Foreign currency exchange contracts	Accrued liabilities	$	681	$	6,468
Foreign currency exchange contracts	Other long-term liabilities	63		—
Total derivative instruments presented as cash flow hedges on the balance sheet		744		6,468
Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet⁽¹⁾	Long-term debt	102,861		106,567
Total hedging instruments presented on the balance sheet		103,605		113,035
Gross amounts subject to master netting arrangements not offset on the balance sheet		419		477
Net amount		$	103,186	$	112,558

(1) Amounts represent reported carrying amounts of our foreign currency denominated debt. See Note 17 for information regarding the fair value of our long-term debt.