The Company uses forward contracts to hedge a portion of its balance sheet foreign exchange re-measurement risk and to hedge certain planned foreign currency expenditures. As of September 30, 2019, the Company had foreign currency contracts outstanding with maturities of up to ten months and aggregate notional values of $526 million (based on exchange rates as of September 30, 2019). Unrealized gains and losses resulting from these contracts are recognized in other income (expense), net and partially offset corresponding foreign exchange gains and losses on the balances and expenditures being hedged. These instruments are not held for speculative or trading purposes, are not designated as hedges for hedge accounting purposes and are marked to market each period through earnings.

The following table presents the balance sheet location and fair value of the Company’s derivatives not designated as hedging instruments:

		Fair Value of Asset (Liability)
	Balance Sheet Location	September 30, 2019			December 31, 2018
Foreign currency contracts	Prepaid expenses and other current assets	$	2.6		$	1.7
Foreign currency contracts	Accrued and other liabilities		(8.7	)		(3.0	)
Total derivatives not designated as hedging instruments		$	(6.1	)	$	(1.3	)

The pretax impact of these foreign currency contracts, both matured and outstanding, on the Condensed Consolidated Statements of Operations is as follows:

Foreign Currency Forward Contracts	Location of Loss	Loss Recognized
Three Months Ended September 30, 2019	Other income (expense), net	$	(11.3	)
Three Months Ended September 30, 2018	Other income (expense), net	$	(4.9	)
Nine Months Ended September 30, 2019	Other income (expense), net	$	(16.3	)
Nine Months Ended September 30, 2018	Other income (expense), net	$	(12.5	)

The Company has a hedging strategy to designate certain foreign currency contracts as net investment hedges to mitigate a portion of the foreign currency risk on the euro net investment in a foreign subsidiary. As of September 30, 2019, the Company held designated foreign currency contracts with outstanding maturities of up to twenty-one months and an aggregate notional value of $320.0 million.

Hedge effectiveness is assessed each quarter based on the net investment in the foreign subsidiary designated as the hedged item and the changes in the fair value of designated foreign currency contracts based on spot rates. For hedges that meet the effectiveness requirements, changes in fair value are recorded as a component of other comprehensive income (loss), net of tax. Amounts excluded from hedge effectiveness at inception under the spot method for designated forward contracts are recognized on a straight-line basis over the life of each contract and for designated cross-currency swap contracts are recognized as interest accrues. For the three and nine months ended September 30, 2019, the Company recognized $2.6 million and $3.8 million, respectively, of pre-tax income in interest expense as a result of amounts excluded from hedge effectiveness under the spot method. As of September 30, 2019, there was no ineffectiveness on the instruments designated as net investment hedges.

The following table presents the balance sheet location and fair value of the derivative instruments designated as net investment hedges:

		Fair Value of Asset (Liability)
	Balance Sheet Location	September 30, 2019		December 31, 2018
Foreign currency contracts	Prepaid expenses and other current assets	$	1.8	$	0.8
Foreign currency contracts	Other noncurrent assets		16.2		—
Total derivatives designated as net investment hedging instruments		$	18.0	$	0.8

The impact of the effective portion of foreign currency contracts designated as net investment hedging instruments, both matured and outstanding, on the Condensed Consolidated Statements of Comprehensive Income (Loss) is as follows:

Foreign Currency Forward Contracts	Location of Gain	Effective Portion of Gain Recognized
Three Months Ended September 30, 2019	Other comprehensive loss, net of tax	$	13.4
Three Months Ended September 30, 2018	Other comprehensive loss, net of tax	$	0.2
Nine Months Ended September 30, 2019	Other comprehensive loss, net of tax	$	14.4
Nine Months Ended September 30, 2018	Other comprehensive loss, net of tax	$	2.6

The Company has implemented a hedging strategy to mitigate a portion of the exposure to changes in cash flows resulting from variable interest rates on the 2026 Term Loan which are based on the one-month LIBOR benchmark rate (see Note 7). During the first quarter of 2019, the Company entered into and designated pay-fixed, receive-variable interest rate swap derivatives as cash flow hedges of interest rate risk which effectively fixed the interest rate on a portion the variable-rate debt. Total notional amount of the interest rate swap derivatives as of September 30, 2019 was $600 million with outstanding maturities up to fifty-four months. There were no derivative instruments designated as cash flow hedges of interest rate risk during the year ended December 31, 2018.

Hedge effectiveness is assessed each quarter, and for hedges that meet the effectiveness requirements, changes in fair value are recorded as a component of other comprehensive income (loss), net of tax, and are reclassified to interest expense as interest payments are made on the Company’s variable rate debt. As of September 30, 2019, there was no ineffectiveness on the instruments designated as cash flow hedges.

The following table presents the balance sheet location and fair value of the derivative instruments designated as cash flow hedges of interest rate risk:

		Fair Value of Asset (Liability)
	Balance Sheet Location	September 30, 2019			December 31, 2018
Interest rate swap contracts	Other noncurrent liabilities	$	(20.4	)	$	—
Total derivatives designated as cash flow hedges of interest rate risk		$	(20.4	)	$	—

The impact of the effective portion of the interest rate swap contracts designated as cash flow hedging instruments on the Condensed Consolidated Statements of Comprehensive Income (Loss) is as follows:

Interest Rate Derivatives

Location of Gain

Effective Portion

of Gain

Recognized

Three Months Ended September 30, 2019

Other comprehensive loss, net of tax

(2.8

)

Nine Months Ended September 30, 2019

Other comprehensive loss, net of tax

(15.3

)