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 income (loss) to earnings for the period in which the settlement of these instruments occurs. The maximum period for which we hedge our cash flow using these instruments is 12 months. Accordingly, at June 30, 2016, 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, 2016 was $29,100, and such contracts have varying terms expiring through December 2016.

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


	Quarter Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
(Loss) gain recorded in accumulated other comprehensive loss	$	(1,483	)	$	(329	)	$	(2,569	)	$	1,898
(Loss) gain reclassified from accumulated other comprehensive loss into earnings	$	(1,611	)	$	1,366		$	(545	)	$	1,554

At June 30, 2016, we expected an estimated $654 pre-tax loss 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 have also entered into foreign currency forward contracts that are either not designated as hedges 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 contract not designated as a hedging instrument at June 30, 2016 was approximately $5,000, and such contract expired in July 2016.

We recognized losses of $(33) and $(89) from foreign currency forward contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the quarters ended June 30, 2016 and 2015, respectively. We recognized a (loss) gain of $(464) and $1,294 from foreign currency forward contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the six months ended June 30, 2016 and 2015, 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, 2016		December 31, 2015
Derivatives designated as hedging instruments	$	200	$	923
Derivatives not designated as hedging instruments		74		326

Total asset derivative instruments	$	274	$	1,249


	Liability Derivatives
	June 30, 2016		December 31, 2015
Derivatives designated as hedging instruments	$	649	$	3
Derivatives not designated as hedging instruments		—		4

Total liability derivative instruments	$	649	$	7