Derivative Instruments

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The Company uses derivative instruments to partially offset its business exposure to foreign currency risk on net investments in certain foreign subsidiaries. The Company enters into foreign currency forward contracts to offset a portion of the changes in the carrying amounts of its net investments in foreign operations due to fluctuations in foreign currency exchange rates. As of March 31, 2020, the Company was a party to four forward contracts with an aggregate notional amount of €40.0 million to hedge foreign currency exposure on net investments in certain of its European subsidiaries whose functional currency is the Euro. These forward contracts are designated as hedging instruments and recognized at fair value as assets or liabilities in the accompanying unaudited Consolidated Balance Sheets. Each contract has a notional amount of €10.0 million and matures annually starting on June 15, 2020 through June 13, 2023. The contracts will settle in US Dollars upon maturity. The forward contracts are designated and qualify as net investment hedges for which effectiveness is assessed based on the spot rate method. Please refer to Note 4, "Derivative Instruments", to the Company’s Consolidated Financial Statements included in the 2019 Annual Report on Form 10-K for further information on net investment hedges.

The following table summarizes the fair value of the Company’s derivative instruments designated as net investment hedges as of March 31, 2020 and December 31, 2019:


(In millions)	March 31, 2020		December 31, 2019
Derivative assets⁽¹⁾:
Foreign exchange forward contracts	$	3.1	$	1.1

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⁽¹⁾The fair value of derivative instruments is measured based on expected future cash flows discounted at market interest rates using observable market inputs and classified as Level 2 within the fair value hierarchy. Fair value of derivative assets is recorded within "Other Current Assets" and "Other Assets" in the accompanying unaudited Consolidated Balance Sheets.

The following table summarizes the amounts recorded in the Company's accompanying unaudited Consolidated Statements of Operations and Consolidated Statements of Comprehensive (Loss) Income related to forward contracts designated as net investment hedges for the three months ended March 31, 2020:


(In millions)	Three Months Ended March 31, 2020
	Other Income, net		Cumulative Translation Adjustments⁽¹⁾
Gains on foreign exchange forward contracts	$	0.3	$	1.3

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⁽¹⁾The amount is presented net of tax impact of $0.4 million for the three months ended March 31, 2020.