Annual report pursuant to Section 13 and 15(d)

DERIVATIVE INSTRUMENTS

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DERIVATIVE INSTRUMENTS
 12 Months Ended
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS
The Company primarily uses forward currency contracts and options to reduce its exposure to foreign currency risk associated with short-term artist fee commitments. The Company may also enter into forward currency contracts to minimize the risks and/or costs associated with changes in foreign currency rates on forecasted operating income. At December 31, 2015 and 2014, the Company had forward currency contracts and options outstanding with notional amounts of $71.1 million and $63.3 million, respectively. These instruments have not been designated as hedging instruments and any change in fair value is reported in earnings during the period of the change. The Company’s foreign currency derivative activity, including the related fair values, are not material to any period presented.
Additionally, the Company has entered into certain interest rate swap and cap agreements to limit its exposure to variable interest rates, related to portions of the Company’s outstanding debt. At December 31, 2015, the Company had an interest rate cap agreement outstanding with a notional amount of $8.2 million. This interest rate cap agreement has not been designated as a hedging instrument. At December 31, 2014, the Company had interest rate swap agreements outstanding with notional amounts of $29.3 million. One of the agreements expired in June 2015 and was designated as a cash flow hedge. As of December 31, 2014, there was no ineffective portion or amount excluded from effectiveness testing for the derivative designated as a cash flow hedging instrument. The Company’s interest rate swap and cap activity, including the related fair values, are not material to any period presented.
The Company does not enter into derivative instruments for speculative or trading purposes and does not anticipate any significant recognition of derivative activity through the income statement in the future related to the instruments currently held. See Note 5—Fair Value Measurements for further discussion and disclosure of the fair values for the Company’s derivative instruments.