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Derivatives
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives 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 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 consolidated statements of operations.

As of December 31, 2019 and 2018, we had the following foreign currency derivative contracts outstanding in U.S. dollars (in thousands):
 
 
December 31, 2019
 
 
Notional
 
Contractual
 
Settlement
Derivative Contracts
 
Amount
 
Exchange Rate
 
Date
Canadian dollar
 
$
948

 
1.3182
 
3/16/2020
Euro
 
9,279

 
1.1180
 
3/17/2020
Norwegian krone
 
11,027

 
9.0688
 
3/17/2020
Pound sterling
 
16,057

 
1.3381
 
3/17/2020

 
 
December 31, 2018
 
 
Notional
 
Contractual
 
Settlement
Derivative Contracts
 
Amount
 
Exchange Rate
 
Date
Canadian dollar
 
$
2,248

 
1.3343
 
3/18/2019
Euro
 
6,967

 
1.1421
 
3/18/2019
Norwegian krone
 
7,713

 
8.5566
 
3/18/2019
Pound sterling
 
16,452

 
1.2655
 
3/18/2019


The following table summarizes the location and fair value amounts of all derivative contracts in the consolidated balance sheets as of December 31, 2019 and 2018 (in thousands):
Derivatives not designated as Hedging Instruments
 
Consolidated Balance Sheet Location
 
December 31, 2019
 
December 31, 2018
Foreign currency contracts
 
Accounts payable and accrued liabilities
 
$
(324
)
 
$
(101
)


The following table summarize the location and amounts of the unrealized and realized gains and losses on derivative contracts in the consolidated statements of operations as of December 31, 2019, 2018 and 2017 (in thousands):
Derivatives not designated as Hedging Instruments
 
Location of gain (loss) recognized in income on derivative contracts
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
Unrealized gain (loss) on foreign currency contracts
 
Other income, net
 
$
(222
)
 
$
386

 
$
(634
)
Realized gain (loss) on foreign currency contracts
 
Other income, net
 
320

 
1,661

 
(1,699
)
Total net gain (loss) on foreign currency contracts
 
 
 
$
98

 
$
2,047

 
$
(2,333
)


Our derivative transactions are governed through International Swaps and Derivatives Association 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 as of December 31, 2019 and 2018 (in thousands):
 
 
Derivative Asset Positions
 
Derivative Liability Positions
 
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
Gross position - asset / (liability)
 
$
127

 
$
113

 
$
(451
)
 
$
(214
)
Netting adjustment
 
(127
)
 
(113
)
 
127

 
113

Net position - asset / (liability)
 
$
—

 
$
—

 
$
(324
)
 
$
(101
)