LOGM 2017 Annual Report

subsidiaries including our Hungary, Germany and India research and development facilities and our sales and marketing operations in Ireland, Germany, the United Kingdom, Australia and India. For the years ended December 31, 2015, 2016 and 2017, approximately 30%, 29% and 24%, respectively, of our revenues were gen- erated by customers outside of the United States and approximately 23%, 20% and 21%, respectively, of our operating expenses occurred in our international operations. Currently, our largest exposure to foreign currency exchange rate risk relates to the Euro, British Pound, Hungar- ian Forint and the Israeli Shekel. To date, changes in foreign currency exchange rates have not had a material impact on our operations, and we estimate that a change of 10% or less in foreign currency exchange rates would not materially affect our operations. As of December 31, 2017, we had outstanding forward contracts with notional amounts equivalent to the follow- ing (in thousands): Currency Hedged December 31, 2017 Euro / Canadian Dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 556 Euro / U.S. Dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,208 Euro / British Pound . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,926 Israeli Shekel / Hungarian Forint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,008 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,698 We had net foreign currency gains of $1.4 million for the year ended December 31, 2015 and net foreign cur- rency losses of $0.5 million and $0.1 million for the years ended December 31, 2016 and 2017, respectively, included in other expense in the consolidated statements of operations. At December 31, 2017, cash and cash equivalents totaled $252.4 million, of which $135.1 million was held in the United States and $117.3 million was held by our international subsidiaries. Our invested cash is subject to inter- est rate fluctuations and, for non-U.S. operations, foreign currency risk. Our consolidated cash balances were impacted unfavorably by $5.2 million and $2.7 million in 2015 and 2016, respectively, and favorably by $8.1 million in 2017 due to changes in foreign currencies relative to the U.S. dollar, particularly the Euro. Interest Rate Sensitivity. Interest income is sensitive to changes in the general level of U.S. interest rates. However, based on the nature and current level of our cash and cash equivalents, which primarily consist of cash, money market instruments and corporate debt securities with maturities of three months or less, we believe there is no material risk of exposure to changes in the fair value of our cash and cash equivalents and marketable secu- rities as a result of changes in interest rates. Interest expense on borrowings under our credit facility is sensitive to changes in interest rates. Loans under the credit facility bear interest at variable rates which reset every 30 to 180 days depending on the rate and period selected. As of December 31, 2017, we did not have any borrowings outstanding under our variable-rate credit facility. 52