Derivative Instruments

The Company enters into foreign currency exchange rate forward contracts (derivative contracts), and certain of these contracts are designated as cash flow hedges of forecasted sales (Designated Derivative Contracts) and are subject to foreign currency exchange rate risk. These derivative contracts allow the Company to sell various foreign currencies in exchange for US dollars at specified contract rates, and are used to hedge forecasted sales over specific quarters. The Company may also enter into derivative contracts that are not designated as cash flow hedges (Non-Designated Derivative Contracts), which are generally entered into to offset the anticipated gains and losses on certain intercompany balances until the expected time of repayment.

The fair value of the notional amount of both the Designated and Non-Designated Derivative Contracts are recorded in other current assets or other accrued expenses in the condensed consolidated balance sheets. Changes in the fair value of Designated Derivative Contracts are recognized as a component of accumulated other comprehensive loss within stockholders' equity, and are recognized in earnings in the condensed consolidated statements of comprehensive income during the period which approximates the time the corresponding third-party sales occur.

As of September 30, 2018, the Company had the following derivative contracts recorded at fair value:



	Designated Derivative Contracts		Non-Designated Derivative Contracts			Total
Notional value	$	86,015	$	38,582		$	124,597
Fair value recorded in other current assets	6,722		747			7,469
Fair value recorded in other accrued expenses	—		(20		)	(20		)

As of September 30, 2018, the Company's outstanding derivative contracts were held by an aggregate of five counterparties, all with various maturity dates within the next six months. Subsequent to September 30, 2018 through November 2, 2018, the Company did not enter into any Designated Derivative Contracts or Non-Designated Derivative Contracts.

The following table summarizes the effect of Designated Derivative Contracts:



	Three Months Ended September 30,					Six Months Ended September 30,
	2018		2017			2018		2017
Amount of gain (loss) on derivative instruments (effective portion) recognized in other comprehensive (loss) income	$	588	$	(3,900	)	$	7,358	$	(9,790	)
Amount of gain (loss) reclassified from accumulated other comprehensive loss into net sales (effective portion)	2,166		(2,283		)	2,166		(2,283		)
Amount of gain excluded from effectiveness testing recognized in SG&A expenses	634		439			1,480		772

The following table summarizes the effect of Non-Designated Derivative Contracts:



	Three Months Ended September 30,					Six Months Ended September 30,
	2018		2017			2018		2017
Amount of gain (loss) on derivative instruments recognized in SG&A expenses	$	250	$	(1,065	)	$	737	$	(2,668	)

The non-performance risk of the Company and the counterparties did not have a material impact on the fair value of its derivative contracts. During the three and six months ended September 30, 2018, the Designated Derivative Contracts remained effective and that portion of any gain or loss was recognized in AOCL and reclassified into earnings in the same period or periods during which the transaction affected earnings. As of September 30, 2018, the amount of unrealized gains on derivative contracts recognized in AOCL are expected to be reclassified into income within the next nine months. Refer to Note 10, "Stockholders' Equity," for further information.