The Company’s risk management objective is to ensure that business exposures to risks are minimized using the most effective and efficient methods to eliminate, reduce, or transfer such exposures. Operating decisions consider these associated risks and, whenever possible, transactions are structured to avoid or mitigate these risks.

From time to time, the Company enters into forward currency exchange contracts (“FX forward contracts”) to manage the exposure on forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/ liabilities in currencies other than the functional currency of certain subsidiaries. Certain of these FX forward contracts are designated as cash flow hedges. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives’ fair value are included in accumulated other comprehensive loss. These changes in fair value are reclassified into earnings as a component of cost of sales, as applicable, when the forecasted transaction impacts earnings. In addition, if the forecasted transaction is no longer probable, the cumulative change in the derivatives’ fair value is recorded as a component of Other income (expense) – net in the period in which the transaction is no longer considered probable of occurring.

The Company had FX forward contracts with an aggregate notional amount of $78.3 million and $76.8 million outstanding as of September 30, 2019 and December 31, 2018, respectively. The aggregate notional amount outstanding as of September 30, 2019 is scheduled to mature within one year. The FX forward contracts outstanding are being used to hedge Euro purchases in the United States. As of September 30, 2019 and December 31, 2018, the net fair value of these contracts was a current liability of $2.4 million and $1.7 million, respectively. The unrealized losses, net of tax, recorded in accumulated other comprehensive loss were $1.1 million and $0.4 million as of September 30, 2019 and December 31, 2018, respectively. The Company anticipates reclassifying the unrealized losses as of September 30, 2019 to cost of sales over the next 12 months.

The following table provides the amount of gain or losses recorded in the Condensed Consolidated Statement of Operations for foreign currency exchange contracts for the three and nine months ended September 30, 2019 and 2018.

		Three Months Ended September 30,					Nine Months Ended September 30,
	Recognized Location	2019			2018		2019		2018
Designated	Cost of sales	$	0.9		$	2.6	$	2.4	$	2.9
Non-Designated	Other income (expense), net	$	(0.3	)	$	2.2	$	1.9	$	2.2