Financial Derivatives (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges

The deferred gains (losses) and related taxes on the Company’s cash flow hedges recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands):

	March 31, 2021			December 31, 2020
Deferred gains (losses) in AOCI	$	(1,212	)	$	(2,188	)
Tax on deferred gains (losses) in AOCI		12			(3	)
Deferred gains (losses) in AOCI, net of taxes	$	(1,200	)	$	(2,191	)
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months	$	(1,031	)

Outstanding Foreign Currency Forward Contracts and Options

The Company had the following outstanding foreign currency forward contracts and options (in thousands):

March 31, 2021

December 31, 2020

Contract Type

Notional

Amount

in USD

Settle

Through

Date

Notional

Amount

in USD

Settle

Through

Date

Cash flow hedges:

Options:

US Dollars/Philippine Pesos

42,000

December 2021

12,000

June 2021

Forwards:

US Dollars/Costa Rican Colones

30,000

August 2022

36,000

December 2021

Euros/Hungarian Forints

1,689

December 2021

—

Euros/Romanian Leis

11,000

December 2021

—

Non-designated hedges:

Forwards

12,481

November 2021

12,439

November 2021

Derivative Instruments Fair Value

The following tables present the fair value of the Company’s derivative instruments included in the accompanying Condensed Consolidated Balance Sheets (in thousands):

		Derivative Assets
	Balance Sheet Location	March 31, 2021		December 31, 2020
Derivatives designated as cash flow hedging instruments:
Foreign currency contracts	Other current assets	$	511	$	154
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets		394		183
Total derivative assets		$	905	$	337

		Derivative Liabilities
	Balance Sheet Location	March 31, 2021		December 31, 2020
Derivatives designated as cash flow hedging instruments:
Foreign currency contracts	Other accrued expenses and current liabilities	$	1,155	$	2,253
Foreign currency contracts	Other long-term liabilities		181		—
			1,336		2,253
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other accrued expenses and current liabilities		75		225
Total derivative liabilities		$	1,411	$	2,478

Effect of the Company's Derivative Instruments

The following table presents the effect of the Company’s derivative instruments included in the accompanying condensed consolidated financial statements (in thousands):

	Location of Gains	Three Months Ended March 31,
	(Losses) in Net Income	2021			2020
Revenues		$	457,886		$	411,166

Derivatives designated as cash flow hedging instruments:
Gains (losses) recognized in AOCI:
Foreign currency contracts		$	208		$	(311	)
Gains (losses) reclassified from AOCI:
Foreign currency contracts	Revenues	$	(757	)	$	926
Derivatives not designated as hedging instruments:
Gains (losses) recognized from foreign currency contracts	Other income (expense), net	$	35		$	(246	)

SYKES ENTERPRISES INC 10-Q