XML 28 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2018
Derivative Financial Instruments  
Derivative Financial Instruments

 

Note 7 — Derivative Financial Instruments

 

The Company is exposed to financial market risks arising from changes in currency exchange rates. Changes in currency exchange rates could affect the Company’s foreign currency denominated monetary assets and liabilities and forecasted cash flows. The Company entered into monthly forward derivative contracts with the intent of mitigating a portion of this risk. The Company only used derivative financial instruments in the context of hedging and not for speculative purposes and had not designated its foreign exchange derivatives as hedges. Accordingly, changes in fair value from these contracts were recorded as “Other, net” in the Company’s Consolidated Statements of Operations. The Company executed derivative transactions with highly rated financial institutions to mitigate counterparty risk.

 

A summary of the foreign exchange derivatives outstanding on March 31, 2018 and December 31, 2017 is as follows:

 

 

 

March 31, 2018

 

December 31, 2017

 

 

 

Fair

 

Maturity

 

Notional

 

Fair

 

Maturity

 

Notional

 

 

 

Value

 

Dates

 

Amounts

 

Value

 

Dates

 

Amounts

 

 

 

(in thousands)

 

Foreign currency exchange forwards

 

$

—

 

April 2018

 

$
5,062

 

$

—

 

January 2018

 

$
622

 

 

The following table shows the gains and (losses) from currency exchange derivatives during the three months ended March 31, 2018 and 2017, which are included in “Other, net” in the Consolidated Statements of Operations, as well as the weighted average notional amount of derivatives outstanding for each period:

 

 

 

Three months ended March 31, 2018

 

Three months ended March 31, 2017

 

 

 

 

 

Weighted average

 

 

 

Weighted average

 

 

 

Gains (losses)

 

notional amount

 

Gains (losses)

 

notional amount

 

 

 

(in thousands)

 

Foreign currency exchange forwards

 

$
17

 

$
930

 

$

—

 

$

—