Derivative financial instruments

Net fair values of derivative financial instruments

The net fair values of derivative financial instruments disclosed within Other Receivables and Other Liabilities at the reporting date, in accordance with IAS

39,

are:

	Year ended December 31,
	2017			2016
Foreign exchange derivatives contracts		8,230			2,759
Contracts with positive fair values		8,230			2,759

Foreign exchange derivatives contracts		(39,799	)		(42,635	)
Contracts with negative fair values		(39,799	)		(42,635	)
Total		(31,569	)		(39,876	)

Foreign exchange derivative contracts and hedge accounting

Tenaris applies hedge accounting to certain cash flow hedges of highly probable forecast transactions. The net fair values of exchange rate derivatives and those derivatives that were designated for hedge accounting as of

December 2017

and

2016,

were as follows:

				Fair Value						Hedge Accounting Reserve
Purchase currency	Sell currency	Term		2017			2016			2017			2016
MXN	USD		2018		(20,447	)		(35,165	)		(534	)		9
USD	MXN		2018		490			694			-			(2,280	)
EUR	USD		2018		5,660			(360	)		1,881			-
USD	EUR		2018		(367	)		(33	)		-			(1,435	)
JPY	USD		2018		(101	)		(179	)		-			73
USD	KWD		2018		(630	)		(2,447	)		(520	)		(1,016	)
USD	ARS		2018		22			(748	)		-			-
ARS	USD		2018		(13,715	)		318			(1,067	)		(93	)
USD	BRL		2018		(17	)		(1,581	)		-			-
USD	CAD		2018		(2,072	)		(225	)		-			-
Others					(392	)		(150	)		-			-
Total					(31,569	)		(39,876	)		(240	)		(4,742	)

Following is a summary of the hedge reserve evolution:

	Equity Reserve Dec-15		Movements 2016			Equity Reserve Dec-16			Movements 2017		Equity Reserve Dec-17
Foreign Exchange		2,783		(7,525	)		(4,742	)		4,502		(240	)
Total Cash flow Hedge		2,783		(7,525	)		(4,742	)		4,502		(240	)

Tenaris estimates that the cash flow hedge reserve at

December 31, 2017

will be recycled to the Consolidated Income Statement during

2018.