Derivatives

We enter into short-duration foreign currency forward derivative contracts to reduce the risk of foreign currency fluctuations. We use these instruments to mitigate our exposure to non-local currency operating working capital. We record these contracts at fair value on our condensed consolidated balance sheets. Although the derivative contracts will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they are not formally designated as hedge contracts for hedge accounting treatment. Accordingly, any changes in the fair value of the derivative instruments during a period will be included in our condensed consolidated statements of operations.

As of June 30, 2017 and December 31, 2016, we had the following foreign currency derivative contracts outstanding in U.S. dollars (in thousands):



	June 30, 2017
Derivative Contracts	Notional Amount		Contractual Exchange Rate	Settlement Date
Canadian dollar	$	6,040	1.3245	9/14/2017
Euro	7,747		1.1227	9/15/2017
Euro	2,260		1.1302	7/14/2017
Norwegian krone	9,472		8.4461	9/15/2017
Pound sterling	11,479		1.2755	9/15/2017



	December 31, 2016
Derivative Contracts	Notional Amount		Contractual Exchange Rate	Settlement Date
Canadian dollar	$	4,553	1.3179	3/14/2017
Euro	4,753		1.0563	3/14/2017
Euro	2,558		1.0659	1/13/2017
Norwegian krone	3,643		8.5101	3/14/2017
Pound sterling	3,908		1.2607	3/14/2017

The following table summarizes the location and fair value amounts of all derivative contracts in the condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016 (in thousands):



Derivatives not Designated as Hedging Instruments	Consolidated Balance Sheet Location	June 30, 2017			December 31, 2016
Foreign currency contracts	Accounts receivable, net	$	25		$	146
Foreign currency contracts	Accrued and other current liabilities	(609		)	—

The following table summarizes the location and amounts of the realized and unrealized gains and losses on derivative contracts in the condensed consolidated statements of operations (in thousands):



		Three Months Ended						Six Months Ended
		June 30,						June 30,
Derivatives not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative Contracts	2017			2016			2017			2016
Unrealized gain (loss) on foreign currency contracts	Other income, net	$	(274	)	$	1,293		$	(730	)	$	319
Realized loss on foreign currency contracts	Other income, net	(807		)	(865		)	(552		)	(1,579		)
Total net income (loss) on foreign currency contracts		$	(1,081	)	$	428		$	(1,282	)	$	(1,260	)

Our derivative transactions are governed through International Swaps and Derivatives Association ("ISDA") master agreements. These agreements include stipulations regarding the right of offset in the event that we or our counterparty default on our performance obligations. If a default were to occur, both parties have the right to net amounts payable and receivable into a single net settlement between parties. Our accounting policy is to offset derivative assets and liabilities executed with the same counterparty when a master netting arrangement exists.

The following table presents the gross and net fair values of our derivatives at June 30, 2017 and December 31, 2016 (in thousands):



	Derivative Asset Positions					Derivative Liability Positions
	June 30, 2017		December 31, 2016			June 30, 2017			December 31, 2016
Gross position - asset / (liability)	$	25	$	181		$	(609	)	$	(35	)
Netting adjustment	—		(35		)	—			35
Net position - asset / (liability)	$	25	$	146		$	(609	)	$	—