The Company’s risk management objective is to ensure that business exposures to risks are minimized using the most effective and efficient methods to eliminate, reduce, or transfer such exposures. Operating decisions consider these associated risks and, whenever possible, transactions are structured to avoid or mitigate these risks.

From time to time, the Company enters into FX Forward Contracts to manage the exposure on forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/liabilities in currencies other than the functional currency of certain subsidiaries. Certain of these FX Forward Contracts are designated as cash flow hedges. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives’ fair value are not included in current earnings but are included in accumulated other comprehensive income (loss) ("AOCI"). These changes in fair value are reclassified into earnings as a component of cost of sales, as applicable, when the forecasted transaction impacts earnings. In addition, if the forecasted transaction is no longer probable, the cumulative change in the derivatives’ fair value is recorded as a component of other income (expense) – net in the period in which the transaction is no longer considered probable of occurring. No amounts were recorded related to forecasted transactions no longer being probable during the three and six months ended June 30, 2022 and 2021, respectively.

The Company had FX Forward Contracts with aggregate notional amounts of $88.8 million and $11.3 million in U.S. dollar equivalent as of June 30, 2022 and December 31, 2021, respectively. The aggregate notional amount outstanding as of June 30, 2022 is scheduled to mature within one year. The FX Forward Contracts purchased are denominated in various foreign currencies. As of June 30, 2022 and December 31, 2021, the net fair value of these contracts was a net short-term liability of $3.1 million and a $0.3 million, respectively. There was $2.3 million and zero unrealized gains (losses), net of income tax, recorded in AOCI as of June 30, 2022 and December 31, 2021, respectively.

The net gains (losses) recorded in the Condensed Consolidated Statements of Operations for FX Forward Contracts for the three and six months ended June 30, 2022 and 2021 are summarized as follows:


		Three Months Ended June 30,						Six Months Ended June 30,
	Recognized Location	2022			2021			2022			2021
Designated	Cost of sales	$	(1.5	)	$	0.1		$	(1.6	)	$	0.1
Non-designated	Other income (expense) - net	$	1.3		$	(0.2	)	$	2.0		$	(0.4	)