7.	DERIVATIVES

We enter into foreign currency forward contracts to offset the earnings impact that foreign exchange rate fluctuations would otherwise have 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 settlement of these instruments occurs. The maximum period for which we hedge our cash flow using these instruments is 12 months. Accordingly, at September 30, 2017, 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 September 30, 2017 was $29,200, and such contracts have varying terms expiring through June 2018.

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


	Quarter Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
(Loss) gain recorded in accumulated other comprehensive loss	$	(1,280	)	$	536	$	(1,399	)	$	(2,033	)
Loss (gain) reclassified from accumulated other comprehensive loss into earnings	$	88		$	129	$	(1,092	)	$	674

At September 30, 2017, we expected an estimated $2,001 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 contracts not designated as hedging instruments at September 30, 2017 was $7,900, and such contracts have varying terms expiring through November 2017.

We recognized a (loss) gain of $(502) and $75 from foreign currency forward contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the quarters ended September 30, 2017 and 2016, respectively. We recognized losses of $912 and $389 from foreign currency forward contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the nine months ended September 30, 2017 and 2016, 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 8.


	Asset Derivatives				Liability Derivatives
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
Derivatives designated as hedging instruments	$	84	$	227	$	1,346	$	35
Derivatives not designated as hedging instruments		114		14		32		4

Total derivative instruments	$	198	$	241	$	1,378	$	39