The Company’s risk management objective is to ensure that business exposures to risks are minimized using the most effective and efficient methods to eliminate, reduce, or transfer such exposures. Operating decisions consider these associated risks and, whenever possible, transactions are structured to avoid or mitigate these risks.

From time to time, the Company enters into foreign currency exchange contracts to manage the exposure on forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/ liabilities in currencies other than the functional currency of certain subsidiaries. Certain of these foreign currency exchange contracts are designated as cash flow hedges. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives’ fair value are not included in current earnings but are included in accumulated other comprehensive income (loss). These changes in fair value are reclassified into earnings as a component of cost of products sold, as applicable, when the forecasted transaction impacts earnings. In addition, if the forecasted transaction is no longer probable, the cumulative change in the derivatives’ fair value is recorded as a component of “Other income (expense), net” in the period in which the transaction is no longer considered probable of occurring. To the extent a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded in earnings in the period in which it occurs.

The Company had foreign currency exchange contracts with an aggregate notional amount of $99.4 million and $76.8 million outstanding as of June 30, 2019 and December 31, 2018, respectively with all of the $99.4 million scheduled to mature within one year. The aggregate notional amount of foreign currency exchange contracts hedges purchases denominated in Euros. As of June 30, 2019 and December 31, 2018, the fair value of these contracts were a current asset of $0.5 million and a net current liability of $1.7 million, respectively. The unrealized gains (losses), net of taxes, recorded in accumulated other comprehensive income (loss) were $0.3 million and $(0.4) million as of June 30, 2019 and December 31, 2018, respectively. We anticipate reclassifying the unrealized gains as of June 30, 2019 to cost of goods sold over the next 12 months.

The following table provides the amount of gain or losses recorded in the Condensed Consolidated Statement of Operations for foreign currency exchange contracts for the three and six months ended June 30, 2019 and 2018.

		Three Months Ended June 30,						Six Months Ended June 30,
	Recognized Location	2019			2018			2019			2018
Designated	Cost of goods sold	$	0.7		$	0.3		$	1.5		$	0.3
Non-Designated	Other income (expense), net	$	(1.6	)	$	(0.1	)	$	(2.3	)	$	—