The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these instruments. The fair values of revolving credit agreements and long-term debt, excluding capital leases, were determined using current rates offered for similar obligations taking into account company credit risk. This valuation methodology is Level 2 as defined in the fair value hierarchy. At September 30, 2020, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $264.2 million and $268.8 million, respectively. At December 31, 2019, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $265.1 million and $266.0 million, respectively.

The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in non-functional currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales.

The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company's exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are generally recognized in cost of sales.

The Company periodically enters into forward foreign currency contracts that are designated as net investment hedges of the Company's net investment in its foreign subsidiaries. For derivative instruments that are designated and qualified as a hedge of a net investment in foreign currency, the gain or loss is reported in other comprehensive income as part of the cumulative translation adjustment to the extent it is effective. The Company utilizes the forward-rate method of assessing hedge effectiveness.

The Company periodically enters into cross-currency swaps, which hedge the variability of expected future cash flows that are attributable to foreign currency risk of certain intercompany loans. Changes in the fair value of cross-currency swaps that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in other (income) expense and interest expense.

The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company's interest rate swap agreements and the associated variable rate financings are predominately based upon the one month LIBOR. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense.

The Company measures its derivatives at fair value on a recurring basis using significant observable inputs. This valuation methodology is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates yield curves and foreign currency spot rates to value its derivatives and also incorporates the effect of the Company's and its counterparties' credit risk into the valuation.

Foreign Currency Derivatives: The Company held forward foreign currency exchange contracts with total notional amounts of $870.7 million at September 30, 2020, primarily denominated in euros, U.S. dollars, Japanese yen, Chinese renminbi, Mexican pesos, British pounds, Swedish kroner and Australian dollars. The Company held forward foreign currency exchange contracts with total notional amounts of $960.9 million at December 31, 2019, primarily denominated in euros, U.S. dollars, Japanese yen, British pounds, Mexican pesos, Australian dollars, Swedish kroner, Brazilian real and Chinese renminbi. The fair value of these contracts approximated a net liability of $3.3 million and $19.8 million at September 30, 2020 and December 31, 2019, respectively.

Forward foreign currency exchange contracts that qualify for hedge accounting are generally used to hedge transactions expected to occur within the next 36 months. The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in OCI. Based on market valuations at September 30, 2020, $4.1 million of the amount of net deferred loss included in OCI at September 30, 2020 is expected to be reclassified as expense into the unaudited condensed consolidated statement of operations over the next twelve months, as the transactions occur.

Interest Rate Derivatives: The Company holds certain contracts that hedge interest payments on its $200.0 million term loan (the "Term Loan") borrowings. The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at September 30, 2020 and December 31, 2019:

The fair value of all interest rate swap agreements was a net liability of $5.5 million and $2.1 million at September 30, 2020 and December 31, 2019, respectively. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in OCI. Based on market valuations at September 30, 2020, $1.8 million of the amount included in OCI as net deferred loss is expected to be reclassified as expense in the unaudited condensed consolidated statement of operations over the next twelve months, as cash flow payments are made in accordance with the interest rate swap agreements.


	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	SEPTEMBER 30 2020		DECEMBER 31 2019		Balance Sheet Location	SEPTEMBER 30 2020		DECEMBER 31 2019
Derivatives designated as hedging instruments
Cash Flow Hedges
Interest rate swap agreements

Current	Other current liabilities	$	—	$	—	Other current liabilities	$	2.5	$	0.7

Long-term	Other long-term liabilities	—		—		Other long-term liabilities	3.0		1.4

Foreign currency exchange contracts
Current	Prepaid expenses and other	3.7		3.1		Prepaid expenses and other	1.5		1.5
	Other current liabilities	3.4		1.7		Other current liabilities	8.7		17.1
Long-term	Other non-current assets	4.7		—		Other non-current assets	1.7		—
	Other long-term liabilities	—		3.5		Other long-term liabilities	1.8		9.6



Total derivatives designated as hedging instruments		$	11.8	$	8.3		$	19.2	$	30.3
Derivatives not designated as hedging instruments
Cash Flow Hedges





Foreign currency exchange contracts
Current	Prepaid expenses and other	1.5		0.4		Prepaid expenses and other	1.9		0.2
	Other current liabilities	0.4		2.3		Other current liabilities	1.4		2.4




Total derivatives not designated as hedging instruments		$	1.9	$	2.7		$	3.3	$	2.6
Total derivatives		$	13.7	$	11.0		$	22.5	$	32.9


	Derivative Assets as of September 30, 2020								Derivative Liabilities as of September 30, 2020
	Gross Amounts of Recognized Assets		Gross Amounts Offset		Net Amounts Presented		Net Amount		Gross Amounts of Recognized Liabilities		Gross Amounts Offset		Net Amounts Presented		Net Amount
Cash Flow Hedges
Interest rate swap agreements	$	—	$	—	$	—	$	—	$	5.5	$	—	$	5.5	$	5.5
Foreign currency exchange contracts	4.8		(4.8)		—		—		8.1		(4.8)		3.3		3.3
Total derivatives	$	4.8	$	(4.8)	$	—	$	—	$	13.6	$	(4.8)	$	8.8	$	8.8

	Derivative Assets as of December 31, 2019								Derivative Liabilities as of December 31, 2019
	Gross Amounts of Recognized Assets		Gross Amounts Offset		Net Amounts Presented		Net Amount		Gross Amounts of Recognized Liabilities		Gross Amounts Offset		Net Amounts Presented		Net Amount
Cash Flow Hedges
Interest rate swap agreements	$	—	$	—	$	—	$	—	$	2.1	$	—	$	2.1	$	2.1
Foreign currency exchange contracts	1.8		(1.8)		—		—		21.6		(1.8)		19.8		19.8
Total derivatives	$	1.8	$	(1.8)	$	—	$	—	$	23.7	$	(1.8)	$	21.9	$	21.9


	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)								Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)
	THREE MONTHS ENDED				NINE MONTHS ENDED					THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 30									SEPTEMBER 30
Derivatives Designated as Hedging Instruments	2020		2019		2020		2019			2020		2019		2020		2019
Cash Flow Hedges
Interest rate swap agreements	$	1.2	$	(0.7)	$	(2.2)	$	(4.7)	Interest expense	$	0.7	$	—	$	1.3	$	(0.3)
Foreign currency exchange contracts	20.1		(19.7)		4.2		(29.6)		Cost of sales	(3.5)		(2.3)		(15.4)		(6.7)
Total	$	21.3	$	(20.4)	$	2.0	$	(34.3)		$	(2.8)	$	(2.3)	$	(14.1)	$	(7.0)




Derivatives Not Designated as Hedging Instruments									Location of Gain or (Loss) Recognized in Income on Derivative	2020		2019		2020		2019
Cash Flow Hedges

Foreign currency exchange contracts									Cost of sales	$	(5.6)	$	(1.9)	$	(4.3)	$	(4.3)
Total										$	(5.6)	$	(1.9)	$	(4.3)	$	(4.3)