Derivative Financial Instruments

12 Months Ended

Dec. 31, 2018

Note 13 — Derivative Financial Instruments

The Company is exposed to financial market risks arising from changes in currency exchange rates. Changes in currency exchange rate changes 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.

The Company did not have any outstanding derivative contracts at December 31, 2018. A summary of the foreign exchange derivatives outstanding on December 31, 2017 is as follows:


	December 31, 2017
	Fair Value		Maturity Dates	Notional Amount
	(in thousands)
Foreign currency exchange forwards	$	—	January 2018	$	622

The following table shows the gains and (losses) from currency exchange derivatives during the years ended December 31, 2018, 2017, and 2016, 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:


	Year ended December 31,
	2018			2017			2016
		Gains (losses)	Weighted average notional amount		Gains (losses)	Weighted average notional amount		Gains (losses)	Weighted average notional amount
	(in thousands)
Foreign currency exchange forwards	$	327	2,869	$	(6)	314	$	219	7,175