Table:
|  |  | December 31, 2019 |  |  |
| --- | --- | --- | --- | --- |
|  | Prepaid Expenses and Other Current Assets | Other Assets | Other Current Liabilities | Other Liabilities |
| Derivatives designated as hedging instruments: |  |  |  |  |
| Foreign exchange forward contracts | $226 | $139 | $369 | $230 |
| Total derivatives designated as hedging instruments | $226 | $139 | $369 | $230 |
| Derivatives not designated as hedging instruments: |  |  |  |  |
| Foreign exchange forward contracts | $973 | $— | $1,807 | $— |
| Interest rate swap contracts . | — | — | 406 | 7,209 |
| Total derivatives not designated as hedging instruments . | $973 | $— | $2,213 | $7,209 |
| Total derivative instruments . | $1,199 | $139 | $2,582 | $7,439 |
Paragraphs:
9. Derivative Financial Instruments
As a global company, we are exposed in the normal course of business to interest rate and foreign currency risks that could affect our financial position, results of operations, and cash flows. We use derivative instruments to hedge against these risks and only hold such instruments for hedging purposes, not for speculative or trading purposes.
Depending on the terms of the specific derivative instruments and market conditions, some of our derivative instruments may be assets and others liabilities at any particular balance sheet date. We report all of our derivative instruments at fair value and account for changes in the fair value of derivative instruments within “Accumulated other comprehensive loss” if the derivative instruments qualify for hedge accounting. For those derivative instruments that do not qualify for hedge accounting (i.e., “economic hedges”), we record the changes in fair value directly to earnings. See Note 11. “Fair Value Measurements” to our consolidated financial statements for information about the techniques we use to measure the fair value of our derivative instruments.
The following tables present the fair values of derivative instruments included in our consolidated balance sheets as of December 31, 2019 and 2018 (in thousands):
Question:
What risks are hedged using the derivative instruments?
Answer: interest rate and foreign currency risks