10-Q
TTEC HOLDINGS, INC. filed this Form 10-Q on 11/07/2018
Entire Document
 

Table of Contents

TTEC HOLDINGS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Fair Value Hedges

The Company enters into foreign exchange forward contracts to economically hedge against foreign currency exchange gains and losses on certain receivables and payables of the Company’s foreign operations. Changes in the fair value of derivative instruments designated as fair value hedges are recognized in earnings in Other income (expense), net. As of September 30, 2018 and December 31, 2017 the total notional amounts of the Company’s forward contracts used as fair value hedges were $104.5 million and $176.2 million, respectively.

Derivative Valuation and Settlements

 

The Company’s derivatives as of September 30, 2018 and December 31, 2017 were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

September 30, 2018

 

 

 

Designated

Not Designated

 

 

 

as Hedging

as Hedging

 

Designation:

 

Instruments

Instruments

 

 

    

Foreign

    

Foreign

 

Derivative contract type:

 

Exchange

 

Exchange

 

Derivative classification:

 

Cash Flow

 

Fair Value

 

 

 

 

 

 

 

 

 

Fair value and location of derivatives in the Consolidated Balance Sheet:

 

 

 

 

 

 

 

Prepaids and other current assets

 

$

644

 

$

839

 

Other long-term assets

 

 

491

 

 

 —

 

Other current liabilities

 

 

(12,005)

 

 

(19)

 

Other long-term liabilities

 

 

(5,293)

 

 

 —

 

Total fair value of derivatives, net

 

$

(16,163)

 

$

820

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

Designated

Not Designated

 

 

 

as Hedging

as Hedging

 

Designation:

 

Instruments

Instruments

 

 

    

Foreign

    

Foreign

 

Derivative contract type:

 

Exchange

 

Exchange

 

Derivative classification:

 

Cash Flow

 

Fair Value

 

 

 

 

 

 

 

 

 

Fair value and location of derivatives in the Consolidated Balance Sheet:

 

 

 

 

 

 

 

Prepaids and other current assets

 

$

220

 

$

1,603

 

Other long-term assets

 

 

393

 

 

 —

 

Other current liabilities

 

 

(15,603)

 

 

(133)

 

Other long-term liabilities

 

 

(11,266)

 

 

 —

 

Total fair value of derivatives, net

 

$

(26,256)

 

$

1,470

 

 

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