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 FX Forward Contracts to manage the currency risks associated with forecasted transactions and assets/liabilities denominated 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 not included in current earnings but are included in accumulated other comprehensive income (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. No amounts were recorded related to forecasted transactions no longer being probable during the three and six months ended June 30, 2021 and 2020, respectively.

The Company had FX Forward Contracts with an aggregate notional amount of $18.1 million and $9.3 million in U.S. dollar equivalent outstanding as of June 30, 2021 and December 31, 2020, respectively. The aggregate notional amount outstanding as of June 30, 2021 is scheduled to mature within one year. The FX Forward Contracts purchased are denominated in various foreign currencies. As of June 30, 2021 and December 31, 2020, the net fair value of these contracts was a net short-term liability of $0.3 million and a net zero balance, respectively. There was $0.2 million and zero unrealized gains (losses), net of income tax, recorded in accumulated other comprehensive loss as of June 30, 2021 and December 31, 2020, respectively.

The net gains (losses) recorded in the Condensed Consolidated Statement of Operations for FX Forward Contracts for the three and six months ended June 30, 2021 and June 30, 2020 are summarized as follows:

		Three Months Ended June 30,						Six Months Ended June 30,
	Recognized Location	2021			2020			2021			2020
Designated	Cost of sales	$	0.1		$	(0.2	)	$	0.1		$	(0.3	)
Non-Designated	Other income (expense) - net	$	(0.2	)	$	0.4		$	(0.4	)	$	0.4