Derivatives

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives From time to time 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.

We had no foreign currency derivative contracts outstanding as of December 31, 2020. As of December 31, 2019, 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

The following table summarizes the location and fair value amounts of all derivative contracts in the consolidated balance sheets as of December 31, 2020 and 2019 (in thousands):


Derivatives not designated as Hedging Instruments	Consolidated Balance Sheet Location	December 31, 2020		December 31, 2019

Foreign currency contracts	Accounts payable and accrued liabilities	$	—	$	(324)

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, 2020, 2019 and 2018 (in thousands):


Derivatives not designated as Hedging Instruments	Location of gain (loss) recognized in income on derivative contracts	December 31, 2020		December 31, 2019		December 31, 2018
Unrealized gain (loss) on foreign currency contracts	Other income, net	$	—	$	(222)	$	386
Realized gain on foreign currency contracts	Other income, net	1,475		320		1,661
Total net gain on foreign currency contracts		$	1,475	$	98	$	2,047

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, 2020 and 2019 (in thousands):


	Derivative Asset Positions				Derivative Liability Positions
	December 31,				December 31,
	2020		2019		2020		2019
Gross position - asset / (liability)	$	—	$	127	$	—	$	(451)
Netting adjustment	—		(127)		—		127
Net position - asset / (liability)	$	—	$	—	$	—	$	(324)