We operate internationally and, in the normal course of business, are exposed to fluctuations in foreign currency exchange rates. The exposures result from portions of our revenues, as well as the related receivables, and expenses that are denominated in currencies other than the U.S. dollar, primarily the Euro and Japanese Yen. We are also exposed to fluctuations in interest rates on outstanding borrowings under our revolving credit facility, if any, and term loan facility. We manage these exposures within specified guidelines through the use of derivatives. All of our derivative instruments are utilized for risk management purposes, and we do not use derivatives for speculative trading purposes.

We enter into foreign exchange forward contracts, with durations of up to 60 months, to hedge exposures resulting from portions of our forecasted revenues, including intercompany revenues, and certain forecasted expenses that are denominated in currencies other than the U.S. dollar. The purpose of these hedges is to reduce the volatility of exchange rate fluctuations on our operating results. These hedges are designated as cash flow hedges upon contract inception. As of December 31, 2019, we had open revenue related foreign exchange forward contracts with notional amounts totaling $1,089.9 that qualified for hedge accounting with current contract maturities through June 2021. As of December 31, 2019, we had open expense related foreign exchange forward contracts with notional amounts totaling $14.0 that qualified for hedge accounting with contract maturities through September 2022.

To achieve a desired mix of floating and fixed interest rates on our term loan, we enter into interest rate swap agreements that qualify for and are designated as cash flow hedges. These contracts convert the floating interest rate on a portion of our debt to a fixed rate, plus a borrowing spread.



Type of Interest Rate Swap	Notional Amount	Effective Date	Termination Date	Fixed Interest Rate or Rate Range
Floating to Fixed	450.0	December 2018	December 2022	2.60% - 2.79%
Floating to Fixed	1,300.0	December 2019	December 2022	2.37% - 2.83%

The amount of gains and (losses) recognized in the consolidated statements of operations for the years ended December 31, 2019, 2018, and 2017 from foreign exchange and interest rate swap contracts that qualified as cash flow hedges were as follows:



	Year ended December 31,
	2019					2018						2017
Financial Statement Line Item in which the Effects of Cash Flow Hedges are Recorded	Net Product Sales		Interest Expense			Net Product Sales			Interest Expense			Net Product Sales		Interest Expense
Total amount presented in the Consolidated Statements of Operations	$	4,990.0	$	(77.8	)	$	4,130.1		$	(98.2	)	$	3,549.5	$	(98.4	)
Impact of cash flow hedging relationships:
Foreign exchange forward contracts	$	36.8	$	—		$	(1.8	)	$	—		$	28.9	$	—
Interest rate swap contracts	$	—	$	13.3		$	—		$	13.6		$	—	$	(1.8	)

The impact on accumulated other comprehensive income (AOCI) and earnings from foreign exchange and interest rate swap contracts that qualified as cash flow hedges, for the years ended December 31, 2019, 2018, and 2017 were as follows:



	Year Ended December 31,
	2019			2018			2017
Foreign Exchange Forward Contracts:
Gain (loss) recognized in AOCI, net of tax	$	27.9		$	37.7		$	(96.1	)
Gain (loss) reclassified from AOCI to net product sales, net of tax	$	28.4		$	(1.4	)	$	18.7
Interest Rate Swap Contracts:
Gain (loss) recognized in AOCI, net of tax	$	(39.0	)	$	(4.8	)	$	7.9
Gain (loss) reclassified from AOCI to interest expense, net of tax	$	10.2		$	10.8		$	(1.1	)

Assuming no change in foreign exchange rates from market rates at December 31, 2019, $6.7 of gains recognized in AOCI will be reclassified to revenue over the next 12 months. Assuming no change in LIBOR-based interest rates from market rates at December 31, 2019, $19.5 of losses recognized in AOCI will be reclassified to interest expense over the next 12 months. Amounts recognized in AOCI for expense related foreign exchange forward contracts were immaterial as of December 31, 2019.

We enter into foreign exchange forward contracts, with durations of up to 8 months, designed to limit the balance sheet exposure of monetary assets and liabilities. We enter into these hedges to reduce the impact of fluctuating exchange rates on our operating results. Hedge accounting is not applied to these derivative instruments as gains and losses on these hedge transactions are designed to offset gains and losses on underlying balance sheet exposures. As of December 31, 2019, the notional amount of foreign exchange contracts where hedge accounting is not applied was $1,974.6.

We recognized a (loss) gain of $(0.4), $23.0 and $(14.7), in other income and (expense) for the years ended December 31, 2019, 2018 and 2017, respectively, associated with the foreign exchange contracts not designated as hedging instruments. These amounts were partially offset by gains or losses on monetary assets and liabilities.



	December 31, 2019
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expenses and other current assets	$	12.7	Other current liabilities	$	6.2
Foreign exchange forward contracts	Other assets	0.6		Other liabilities	1.1
Interest rate contracts	Prepaid expenses and other current assets	—		Other current liabilities	19.5
Interest rate contracts	Other assets	—		Other liabilities	41.9
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expenses and other current assets	17.2		Other current liabilities	20.4
Total fair value of derivative instruments		$	30.5		$	89.1



	December 31, 2018
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expenses and other current assets	$	16.9	Other current liabilities	$	7.3
Foreign exchange forward contracts	Other assets	0.3		Other liabilities	3.1
Interest rate contracts	Prepaid expenses and other current assets	20.1		Other current liabilities	0.8
Interest rate contracts	Other assets	—		Other liabilities	17.3
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Prepaid expenses and other current assets	23.6		Other current liabilities	11.5
Total fair value of derivative instruments		$	60.9		$	40.0

Although we do not offset derivative assets and liabilities within our consolidated balance sheets, our International Swap and Derivatives Association agreements provide for net settlement of transactions that are due to or from the same counterparty upon early termination of the agreement due to an event of default or other termination event. The following tables summarize the potential effect on our condensed consolidated balance sheets of offsetting our foreign exchange forward contracts and interest rate contracts subject to such provisions:



December 31, 2019
								Gross Amounts Not Offset in the Consolidated Balance Sheet
Description	Gross Amounts of Recognized Assets/Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet	Net Amounts of Assets/Liabilities Presented in the Consolidated Balance Sheet			Derivative Financial Instruments			Cash Collateral Received (Pledged)		Net Amount
Derivative assets	$	30.5			$	30.5		$	(21.4	)	$	—	$	9.1
Derivative liabilities	$	(89.1	)		$	(89.1	)	$	21.4		$	—	$	(67.7	)



December 31, 2018
									Gross Amounts Not Offset in the Consolidated Balance Sheet
Description	Gross Amounts of Recognized Assets/Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets/Liabilities Presented in the Consolidated Balance Sheet			Derivative Financial Instruments			Cash Collateral Received (Pledged)		Net Amount
Derivative assets	$	60.9		$	—	$	60.9		$	(30.2	)	$	—	$	30.7
Derivative liabilities	$	(40.0	)	$	—	$	(40.0	)	$	30.2		$	—	$	(9.8	)