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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments We transact business in various foreign currencies and have international sales and expenses denominated in foreign currencies. Therefore, we are exposed to certain risks arising from both our business operations and economic conditions. Our risk management strategy includes the use of derivative financial instruments to hedge foreign currency exchange rate fluctuations on monetary assets or liabilities denominated in foreign currencies. We do not enter into derivative financial contracts for speculative or trading purposes. We do not believe that we are exposed to more than a nominal amount of credit risk in our foreign currency hedges, as counterparties are large, global and well-capitalized financial institutions. We classify cash flows from our derivative transactions as cash flows from operating activities in our consolidated statements of cash flows. Balance Sheet Hedges Our foreign currency forward contracts, primarily accounts receivable, are not designated for hedge accounting treatment. Therefore, these forward contracts are accounted for as derivatives whereby the fair value of the contracts are reported as other current assets or other current liabilities on our consolidated balance sheets, and gains and losses resulting from changes in the fair value are recorded as a component of other (expense) income, net, in our consolidated statements of operations. The gains and losses on these foreign currency forward contracts generally offset the gains and losses in the underlying foreign currency denominated assets and liabilities, which are also recorded to other (expense) income, net, in our consolidated statements of operations. Total gross notional amount and fair value for foreign currency derivatives that are not designated as hedging instruments are accounted for as follows (in thousands):
|  | December 31, 2020
|  | Notional Amount |  | Fair Value
|  |  | Asset (1) |  | Liability
Derivatives not designated as hedging instruments |  |  |  |  |  |
Foreign currency forward contracts |  | $ | 368,448 |  |  | $ | 293 |  |  | $ | — |
Total |  | $ | 368,448 |  |  | $ | 293 |  |  | $ | — |
_________ (1) As presented in the consolidated balance sheet within other current assets. We did not have any derivative instruments as of December 31, 2019. The effect of foreign currency forward contracts not designated as hedging instruments in our consolidated statements of operations for the year ended December 31, 2020 was as follows (in thousand):
|  | Statement of Operations Classification |  | Year Ended December 31, 2020
Derivatives not designated as hedging instruments |  |  |  |
Foreign currency forward contracts |  | Other (expense) income, net |  | $ | 293 |
Total |  |  |  | $ | 293 |
There were no hedging activities for the years ended December 31, 2019 and 2018.

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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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