We enter into foreign currency forward and option contracts to offset the earnings impact that foreign exchange rate fluctuations would otherwise have on certain monetary liabilities that are denominated in nonfunctional currencies.

Cash Flow Hedging Instruments

We enter into foreign currency forward contracts that are designated as cash flow hedges. The settlement of these derivatives results in reclassifications from accumulated other comprehensive loss to earnings for the period in which the settlement of these instruments occurs. The maximum period for which we hedge our cash flow using these instruments is

months. At March 31, 2021, no foreign currency forward contracts were designated as cash flow hedges.

The impact from foreign exchange derivative instrument

designated as cash flow hedges was as follows:


Quarters Ended March 31,	2021		2020
Gain recorded in accumulated other comprehensive loss	$	103	$	3,473
Loss reclassified from accumulated other comprehensive loss into earnings	$	333	$	157

At March 31, 2021, we expected an estimated $34

pre-tax

gain to be reclassified into earnings to reflect the fixed prices obtained from foreign exchange

hedging within the next 12 months.

Derivatives Not Designated as Hedging Instruments

We have also entered into foreign currency forward and option contracts that are either not designated as hedges or did not qualify for hedge accounting. These derivative instruments were effective economic hedges for all of the periods presented. The fair value gains and losses on these contracts are recognized in earnings as a component of selling, general and administrative expenses. We had only one foreign currency exchange contract not designated as a hedging instrument at March 31, 2021, the total notional value of which was

$4,600,

and such contract subsequently expired in

April 2021.

We recognized gain

of $27 and $829 from foreign currency forward and option contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the quarters ended March 31, 2021 and 2020, respectively.

The following table summarizes the fair value of derivative instruments, which consist solely of foreign exchange contracts, included in accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. See Note 6.


	Asset Derivatives				Liability Derivatives
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Derivatives designated as hedging instruments	$	—	$	—	$	—	$	91
Derivatives not designated as hedging instruments		—		—		5		10

Total derivative instruments	$	—	$	—	$	5	$	101