4.	DERIVATIVES

We enter into foreign currency forward contracts to offset the earnings impact that foreign exchange rate fluctuations would otherwise have had on certain monetary liabilities that are denominated in nonfunctional currencies.

Cash Flow Hedging Instruments

We enter into foreign currency forward contracts that are designated as cash flow hedges. The settlement of these derivatives results in reclassifications from accumulated other comprehensive loss to earnings for the period in which the hedged transaction occurs. The maximum length of time for which we hedge our exposure to the variability in future cash flows for forecasted transactions is 12 months and, accordingly, at June 30, 2015, all of our open foreign currency forward contracts had maturities of one year or less. The total notional value of our foreign currency exchange contracts designated as cash flow hedges at June 30, 2015 was $28,950, and such contracts have varying terms expiring through December 2015. We did not have any foreign currency forward contracts designated as cash flow hedges and/or did not qualify for hedge accounting at June 30, 2014.

The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows:


	Quarter Ended June 30,					Six Months Ended June 30,
	2015			2014		2015		2014
(Loss) gain recorded in accumulated other comprehensive loss	$	(329	)		—	$	1,898		—
Gain reclassified from accumulated other comprehensive loss into earnings	$	1,366			—	$	1,554		—

At June 30, 2015, we expected an estimated $728 pre-tax gain to be reclassified into earnings to reflect the fixed prices obtained from foreign exchange hedging within the next 12 months.

Derivatives Not Designated as Hedging Instruments

We also enter into foreign currency forward contracts that are not designated as hedges and/or did not qualify for hedge accounting. These derivative instruments were effective economic hedges for all of the periods presented. The fair value gains and losses on these contracts are recognized in earnings as a component of selling, general and administrative expenses. The total notional value of our foreign currency exchange contracts not designated as hedging instruments at June 30, 2015 was $13,200, and such contracts have varying terms expiring through October 2015.

We recognized a loss of $(89) and $(1,631) in our condensed consolidated unaudited statements of income from foreign currency forward contracts not designated as hedging instruments for the quarters ended June 30, 2015 and 2014, respectively. We recognized a gain (loss) of $1,294 and $(1,555) in our condensed consolidated unaudited statements of income from foreign currency forward contracts not designated as hedging instruments for the six months ended June 30, 2015 and 2014, respectively.

The following table summarizes the fair value of derivative instruments, which consist solely of foreign currency forward contracts, included in other current assets and accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. See Note 5.


	Asset Derivatives
	June 30, 2015		December 31, 2014
Derivatives designated as hedging instruments	$	331	$	384
Derivatives not designated as hedging instruments		307		260

Total asset derivative instruments	$	638	$	644

	Liability Derivatives
	June 30, 2015		December 31, 2014
Derivatives designated as hedging instruments	$	24		—
Derivatives not designated as hedging instruments		—		—

Total liability derivative instruments	$	24		—