The Company uses certain financial derivatives to mitigate its exposure to volatility in foreign currency exchange rates. The Company uses these derivative instruments to hedge exposures in the ordinary course of business and does not invest in derivative instruments for speculative purposes. The Company manages market and credit risks associated with its derivative instruments by establishing and monitoring limits as to the types and degree of risk that may be undertaken, and by entering into transactions with counterparties that have investment grade credit ratings. Fair values of derivative instruments are as follows:

($ in thousands)	Balance sheet location	February 28, 2019			February 28, 2018			August 31, 2018
Derivatives designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	396		$	—		$	775
Foreign currency forward contracts	Other current liabilities		(9	)		(965	)		—
Total derivatives designated as hedging instruments		$	387		$	(965	)	$	775

Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	30		$	19		$	123
Foreign currency forward contracts	Other current liabilities		(13	)		(45	)		(12	)
Total derivatives not designated as hedging instruments		$	17		$	(26	)	$	111

Accumulated other comprehensive income included realized and unrealized after-tax gains of $5.7 million, $3.0 million, and $5.0 million at February 28, 2019, February 28, 2018, and August 31, 2018, respectively, related to derivative contracts designated as hedging instruments.

The amount of gain (loss) recognized in other comprehensive income is as follows:

Three months ended

Six months ended

($ in thousands)

February 28,

2019

February 28,

2018

February 28,

2019

February 28,

2018

Foreign currency forward contracts, net of tax expense

(benefit) of $25, ($330), $186, and ($273) respectively

)

(1,047

)

643

(924

)

For the three months ended February 28, 2019 and February 28, 2018, the Company settled foreign currency forward contracts resulting in an after-tax net gain of $0.2 million and after-tax net loss of $0.6 million, respectively, which were included in other comprehensive income as part of a currency translation adjustment. For the six months ended February 28, 2019 and February 28, 2018, the Company settled foreign currency forward contracts resulting in an after-tax net gain of $0.9 million and an after-tax net loss of $1.3 million, respectively, which were included in other comprehensive income as part of a currency translation adjustment. There were no amounts recorded in the condensed consolidated statements of operations related to ineffectiveness of foreign currency forward contracts related to net investment hedges for the three and six months ended February 28, 2019 and February 28, 2018.

At February 28, 2019, February 28, 2018, and August 31, 2018, the Company had outstanding foreign currency forward contracts to sell a notional amount of 32.7 million Euro, 32.8 million Euro, and 32.7 million Euro, respectively, at fixed prices to settle during the next fiscal quarter. At February 28, 2019, February 28, 2018, and August 31, 2018, the Company had an outstanding foreign currency forward contract to sell a notional amount of 43.0 million South African Rand at fixed prices to settle during the next fiscal quarter. The Company’s foreign currency forward contracts qualify as hedges of a net investment in foreign operations.

The Company generally does not elect hedge accounting treatment for derivative contracts related to future settlements of foreign denominated intercompany receivables and payables. If the Company does not elect hedge accounting treatment for a derivative, the Company carries the derivative at its fair value in the condensed consolidated balance sheets and recognizes any subsequent changes in its fair value during a period through earnings in the condensed consolidated statements of operations. At February 28, 2019, February 28, 2018, and August 31, 2018, the Company had notional value of $2.0 million, $6.2 million, and $5.0 million, respectively, of U.S. dollar equivalent of foreign currency forward contracts outstanding that are not designated as hedging instruments.