Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Fair Value

DERIVATIVE FINANCIAL INSTRUMENTS

As of December 31, 2021, the U.S. dollar equivalent notional value of outstanding foreign currency forward and option contracts, which are denominated in euros, was $24.2 and the fair value was $1.9, recorded within other current assets in our Consolidated Balance Sheet. There were no derivative contracts outstanding as of December 31, 2020. During the years ended December 31, 2021 and 2020, we recognized losses related to foreign currency derivatives not designated as hedges of $1.4 and $1.4, respectively, within general and administrative expenses in our Consolidated Income Statement.

From time to time, we enter into call option contracts to mitigate exposure to commodity price fluctuations. There were no call option contracts outstanding as of December 31, 2021 and 2020.

We utilize market approaches to estimate the fair value of our derivative instruments by discounting anticipated future cash flows derived from the derivative’s contractual terms and observable foreign exchange rates. The fair values of the derivatives summarized above are determined based on Level 2 inputs in the fair value hierarchy.