Commodity Price Risk Management

At March 31, 2021 and December 31, 2020, the Company had fixed price commodity contracts with notional amounts aggregating $5.8 million and $8.8 million, respectively. As commodity contracts settle, gains (losses) as a result of changes in fair values are adjusted to the contracts with the customers through revenues.

Foreign Exchange Rate Risk Management

The Company had the following notional amounts outstanding under foreign exchange contracts and cross-currency interest rate swap agreements (in millions):


	March 31, 2021					December 31, 2020
	Notional Amount in U.S. Dollars		Fair Value			Notional Amount in U.S. Dollars		Fair Value
Forward Currency Contracts (1):
Assets	$	10.0	$	0.1		$	175.8	$	2.1
Liabilities		121.3		(1.3	)		102.5		(0.4	)
Cross-Currency and Interest Rate Swap Agreements (2):
Liabilities		505.0		(26.2	)		505.0		(53.9	)

	$	636.3	$	(27.4	)	$	783.3	$	(52.2	)

(1)	Derivatives not designated as accounting hedges.

(2)	Derivatives designated as accounting hedges.

In addition, the Company periodically enters into purchase and sales contracts denominated in currencies other than the functional currency of the parties to the transaction. The Company accounts for these transactions separately valuing the “embedded derivative” component of these contracts. The

contracts, denominated in currencies other than the functional currency of the transacting parties, amounted to $6.1 million for the delivery of products and $4.3 million for the purchase of products at March 31, 2021 and $7.5 million for the delivery of products and $4.8 million for the purchase of products at December 31, 2020. The changes in the fair value of these embedded derivatives are recorded in interest and other income (expense), net in the unaudited condensed consolidated statements of income and comprehensive income (loss).

The derivative instruments described above are recorded in the unaudited condensed consolidated balance sheets as follows (dollars in millions):


	March 31, 2021			December 31, 2020
Derivatives designated as hedging instruments
Interest rate cross-currency swap agreements
Other current assets	$	7.1		$	7.6
Other current liabilities		(9.3	)		(4.3	)
Other long-term liabilities		(24.0	)		(57.2	)

Total derivatives designated as hedging instruments		(26.2	)		(53.9	)

Derivatives not designated as hedging instruments
Forward currency contracts
Other current assets	$	0.1		$	2.1
Other current liabilities		(1.3	)		(0.4	)
Embedded derivatives in purchase and delivery contracts
Other current assets		—			0.1
Other current liabilities		(0.3	)		—
Fixed price commodity contracts
Other current assets		3.8			3.1

Total derivatives not designated as hedging instruments		2.3			4.9

Total derivatives	$	(23.9	)	$	(49.0	)

The following is a summary of the activity included in the unaudited condensed consolidated statements of income and comprehensive income loss related to the derivative instruments described above (in millions):


		Three Months Ended March 31,
	Financial Statement Classification	2021			2020
Derivatives not designated as hedging instruments
Forward currency contracts	Interest and other income (expense), net	$	(5.0	)	$	(0.5	)
Embedded derivatives in purchase and delivery contracts	Interest and other income (expense), net		(0.4	)		0.6

		$	(5.4	)	$	0.1

Derivatives designated as Cash Flow hedging instruments
Interest rate cross-currency swap agreements
Interest incurred	Interest and other income (expense), net	$	(1.1	)	$	—
Unrealized gains (losses) on contracts	Accumulated other comprehensive income		9.9			(19.0	)

		$	8.8		$	(19.0	)

Derivatives designated as Net Investment hedging instruments
Interest rate cross-currency swap agreements
Interest earned	Interest and other income (expense), net	$	2.5		$	2.6
Unrealized gains on contracts	Accumulated other comprehensive income		17.8			29.9

		$	20.3		$	32.5