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DERIVATIVES | 12 Months Ended
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Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES | DERIVATIVES The Company uses derivative instruments to manage exposures to currency exchange rates, interest rates and commodity prices arising in the normal course of business. Both at inception and on an ongoing basis, the derivative instruments that qualify for hedge accounting are assessed as to their effectiveness, when applicable. Hedge ineffectiveness was immaterial for each of the three years in the period ended December 31, 2019. The Company is subject to the credit risk of the counterparties to derivative instruments. Counterparties include a number of major banks and financial institutions. None of the concentrations of risk with any individual counterparty was considered significant at December 31, 2019. The Company does not expect any counterparties to fail to meet their obligations. Cash flow hedges Certain foreign currency forward contracts are qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $59,982 at December 31, 2019 and $45,909 at December 31, 2018. Fair value hedges Certain interest rate swap agreements are qualified and designated as fair value hedges. At December 31, 2019, the Company had interest rate swap agreements outstanding that effectively convert notional amounts of $50,000 of debt from a fixed interest rate to a variable interest rate based on three-month LIBOR plus a spread of between 0.5% and 0.6%. The variable rates reset every three months, at which time payment or receipt of interest will be settled. Net investment hedges The Company has cross currency swaps that are qualified and designated as net investment hedges. The dollar equivalent gross notional amount of these contracts is $50,000 as of December 31, 2019. Derivatives not designated as hedging instruments The Company has certain foreign exchange forward contracts which are not designated as hedges. These derivatives are held as hedges of certain balance sheet exposures. The dollar equivalent gross notional amount of these contracts was $363,820 at December 31, 2019 and $328,534 at December 31, 2018. Fair values of derivative instruments in the Company's Consolidated Balance Sheets follow:
|  | December 31, 2019 |  | December 31, 2018
Derivatives by hedge designation |  | Other Current Assets |  | Other Current Liabilities |  | Other Assets |  | Other Liabilities |  | Other Current Assets |  | Other Current Liabilities |  | Other Assets |  | Other Liabilities
Designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | $ | 1,288 |  |  | $ | 522 |  |  | $ | — |  |  | $ | — |  |  | $ | 647 |  |  | $ | 404 |  |  | $ | — |  |  | $ | — |
Interest rate swap agreements |  | — |  |  | — |  |  | 2,964 |  |  | — |  |  | — |  |  | — |  |  | 302 |  |  | 7,033 |
Cross currency swap agreements |  | — |  |  | — |  |  | — |  |  | 653 |  |  | — |  |  | — |  |  | — |  |  | — |
Not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | 2,397 |  |  | 973 |  |  | — |  |  | — |  |  | 6,375 |  |  | 829 |  |  | — |  |  | — |
Total derivatives |  | $ | 3,685 |  |  | $ | 1,495 |  |  | $ | 2,964 |  |  | $ | 653 |  |  | $ | 7,022 |  |  | $ | 1,233 |  |  | $ | 302 |  |  | $ | 7,033 |
The effects of undesignated derivative instruments on the Company's Consolidated Statements of Income consisted of the following:
|  |  |  | Year Ended December 31,
Derivatives by hedge designation |  | Classification of gains |  | 2019 |  | 2018
Not designated as hedges: |  |  |  |  |  |
Foreign exchange contracts |  | Selling, general & administrative expenses |  | $ | 13,154 |  |  | $ | 7,452 |
The effects of designated cash flow hedges on AOCI and the Company's Consolidated Statements of Income consisted of the following:
|  | December 31,
Total gain (loss) recognized in AOCI, net of tax |  | 2019 |  | 2018
Foreign exchange contracts |  | $ | 620 |  |  | $ | 173 |
Net investment hedges |  | 1,006 |  |  | 1,521 |
The Company expects a gain of $620 related to existing contracts to be reclassified from AOCI, net of tax, to earnings over the next 12 months as the hedged transactions are realized.
|  |  |  | Year Ended December 31,
Derivative type |  | Gain (loss) reclassified from AOCI to: |  | 2019 |  | 2018
Foreign exchange contracts |  | Net sales |  | $ | 975 |  |  | $ | (225 | )
|  | Cost of goods sold |  | 454 |  |  | (3 | )

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- References No definition available. + Details
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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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