Derivative Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The notional amount of the Company's derivative instruments is summarized as follows (in millions):



	As of December 31,
	2019		2018
Designated derivatives:
Cash flow hedges	$	484.0	$	497.7
Interest rate swap contracts	300.0		—
Total designated derivatives	$	784.0	$	497.7

Non-designated derivatives	162.9		158.7
Total	$	946.9	$	656.4

The fair value of derivative instruments on the Consolidated Balance Sheets was as follows:



		As of December 31,
	Balance Sheet Location	2019		2018
Derivative assets:
Derivatives designated as hedging instruments:
Foreign currency contracts as cash flow hedges	Other current assets	$	2.2	$	5.2
Foreign currency contracts as cash flow hedges	Other long-term assets	0.3		—
Total derivatives designated as hedging instruments		$	2.5	$	5.2
Derivatives not designated as hedging instruments	Other current assets	—		0.1
Total derivative assets		$	2.5	$	5.3
Derivative liabilities:
Derivatives designated as hedging instruments:
Foreign currency contracts as cash flow hedges	Other accrued liabilities	$	6.6	$	6.6
Interest rate swap designated as fair value hedges	Other long-term liabilities	3.1		—
Total derivatives designated as hedging instruments		$	9.7	$	6.6
Derivatives not designated as hedging instruments	Other accrued liabilities	0.2		0.5
Total derivative liabilities		$	9.9	$	7.1

Designated Derivatives

The Company uses foreign currency forward contracts to hedge the Company's planned cost of revenues and operating expenses denominated in foreign currencies. These derivatives are designated as cash flow hedges. Cash flow hedge derivatives typically have maturities of twenty-four months or less. As of December 31, 2019, an estimated $4.4 million of unrealized net loss within accumulated other comprehensive loss is expected to be reclassified into earnings within the next twelve months.

In 2019, the Company entered into interest rate swaps with an aggregate notional amount of $300.0 million designated as fair value hedges of our fixed-rate 2041 Notes. These swaps convert the fixed interest rates of the notes to floating interest rates based on the London InterBank Offered Rate (LIBOR). All of the interest rate swaps will expire within ten years or less.

Effect of Derivative Instruments on the Consolidated Statements of Operations

For foreign currency forward contracts, the Company recognized unrealized losses of $6.3 million and $8.7 million, and an unrealized gain of $20.2 million in accumulated other comprehensive loss for the effective portion of its derivative instruments during the years ended December 31, 2019, 2018, and 2017, respectively. The Company reclassified a loss of $3.8 million and gains of $0.9 million and $7.6 million out of accumulated other comprehensive loss to cost of revenues and operating expenses in the Consolidated Statement of Operations during the years ended December 31, 2019, 2018, and 2017, respectively.

Non-Designated Derivatives

The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the remeasurement of certain monetary assets and liabilities denominated in foreign currencies. These foreign exchange forward contracts typically have maturities of approximately one to four months. The outstanding non-designated derivative instruments are carried at fair value. Changes in the fair value of these derivatives recorded in other expense, net within the Consolidated Statements of Operations were $3.6 million, $7.6 million and $1.8 million during the years ended December 31, 2019, 2018, and 2017, respectively.

See Note 2, Significant Accounting Policies, for the Company’s policy regarding the offsetting of derivative assets and derivative liabilities.