DERIVATIVES

The Company uses derivative investments to manage exposures to currency exchange rates, interest rates and commodity prices arising in the normal course of business. Both at inception and on an ongoing basis, the derivative instruments that qualify for hedge accounting are assessed as to their effectiveness, when applicable. Hedge ineffectiveness was immaterial for the three years ended December 31, 2015.

The Company is subject to the credit risk of the counterparties to derivative instruments. Counterparties include a number of major banks and financial institutions. None of the concentrations of risk with any individual counterparty was considered significant at December 31, 2015. The Company does not expect any counterparties to fail to meet their obligations.

Cash flow hedges

Certain foreign currency forward contracts are qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $30,388 at December 31, 2015 and $27,265 at December 31, 2014.

Net investment hedges

The Company had foreign currency forward contracts that were qualified and designated as net investment hedges. The dollar equivalent gross notional amount of these short-term contracts was $60,734 at December 31, 2014.

Derivatives not designated as hedging instruments

The Company has certain foreign exchange forward contracts which are not designated as hedges. These derivatives are held as economic hedges of certain balance sheet exposures. The dollar equivalent gross notional amount of these contracts was $267,626 at December 31, 2015 and $280,949 at December 31, 2014.

The Company had short-term silver forward contracts with notional amounts of $2,804 at December 31, 2015. At December 31, 2014, the Company had short-term silver and copper forward contracts with notional amounts of $4,467 and $1,066, respectively.

Fair values of derivative instruments in the Company's Consolidated Balance Sheets follow:



	December 31, 2015				December 31, 2014
Derivatives by hedge designation	Other Current Assets		Other Current Liabilities		Other Current Assets		Other Current Liabilities
Designated as hedging instruments:
Foreign exchange contracts	$	178	$	731	$	468	$	935
Net investment contracts	—		—		1,091		469
Not designated as hedging instruments:
Foreign exchange contracts	625		2,303		482		3,638
Commodity contracts	40		8		47		69
Total derivatives	$	843	$	3,042	$	2,088	$	5,111

The effects of undesignated derivative instruments on the Company's Consolidated Statements of Income for the years ended December 31, 2015 and 2014 consisted of the following:



		Year Ended December 31,
Derivatives by hedge designation	Classification of gains (losses)	2015		2014
Not designated as hedges:
Foreign exchange contracts	Selling, general & administrative expenses	$	18,875	$	(10,427	)
Commodity contracts	Cost of goods sold	440		702

The effects of designated cash flow hedges on AOCI and the Company's Consolidated Statements of Income for the years ended December 31, 2015 and 2014 consisted of the following:



	December 31,
Total gain (loss) recognized in AOCI, net of tax	2015			2014
Foreign exchange contracts	$	(551	)	$	(9	)
Net investment contracts	$	1,099		$	—

The Company expects a loss of $551 related to existing contracts to be reclassified from AOCI, net of tax, to earnings over the next 12 months as the hedged transactions are realized.



		Year Ended December 31,
Derivative type	Gain (loss) reclassified from AOCI to:	2015			2014
Foreign exchange contracts	Sales	$	(1,191	)	$	(80	)
	Cost of goods sold	771			422