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Financial instruments and concentration of credit risks
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Financial instruments and concentration of credit risks
Financial instruments and concentration of credit risks
Due to its foreign operations, the company is exposed to the effects of foreign currency exchange rate fluctuations on the U.S. dollar, principally related to intercompany account balances. The company uses derivative financial instruments to reduce its exposure to market risks from changes in foreign currency exchange rates on such balances. The company enters into foreign exchange forward contracts, generally having maturities of three months or less, which have not been designated as hedging instruments. At December 31, 2017 and 2016, the notional amount of these contracts was $514.0 million and $428.9 million, respectively. The fair value of these forward contracts is based on quoted prices for similar but not identical financial instruments; as such, the inputs are considered Level 2 inputs.
The following table summarizes the fair value of the company’s foreign exchange forward contracts as of December 31, 2017 and 2016.
As of December 31,
 
2017

 
2016

Balance Sheet Location
 
 
 
 
Prepaid expenses and other current assets
 
$
4.9

 
$
2.4

Other accrued liabilities
 
1.6

 
1.9

Total fair value
 
$
3.3

0.5

$
0.5



The following table summarizes the location and amount of gains and losses recognized on foreign exchange forward contracts
for the three years ended December 31, 2017.
Year Ended December 31,
2017

 
2016

 
2015

Statement of Income Location
 
 
 
 
 
Other income (expense), net
$
27.5

 
$
(29.1
)
 
$
15.6


Financial instruments also include temporary cash investments and customer accounts receivable. Temporary investments are placed with creditworthy financial institutions, primarily in money market funds, time deposits and certificate of deposits which may be withdrawn at any time at the discretion of the company without penalty. At December 31, 2017 and 2016, the company’s cash equivalents principally have maturities of less than one month or can be withdrawn at any time at the discretion of the company without penalty. Due to the short maturities of these instruments, they are carried on the consolidated balance sheets at cost plus accrued interest, which approximates market value. Receivables are due from a large number of customers that are dispersed worldwide across many industries. At December 31, 2017 and 2016, the company had no significant concentrations of credit risk with any one customer. At December 31, 2017 and 2016, the company had $75.8 million and $74.0 million, respectively, of receivables due from various U.S. federal governmental agencies. At December 31, 2017 and 2016, the carrying amount of cash and cash equivalents approximated fair value.