(21) Derivative Instruments and Hedging Activities

We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have significant foreign currency exposure through both our Australian and Singaporean manufacturing activities, and international sales operations. We have established a foreign currency hedging program using purchased currency options and forward contracts to hedge foreign-currency-denominated financial assets, liabilities and manufacturing cash flows. The terms of such foreign currency hedging contracts generally do not exceed three years. The goal of this hedging program is to economically manage the financial impact of foreign currency exposures denominated mainly in Euros, Australian and Singapore dollars. Under this program, increases or decreases in our foreign currency denominated financial assets, liabilities, and firm commitments are partially offset by gains and losses on the hedging instruments.

We do not designate these foreign currency contracts as hedges. We have determined our hedge program to be a non-effective hedge as defined under the FASB issued authoritative guidance. All movements in the fair value of the foreign currency instruments are recorded within other income, net in our consolidated statements of income and through changes in our operating assets and liabilities within our consolidated statements of cash flows. We do not enter into financial instruments for trading or speculative purposes.

We held foreign currency instruments with notional amounts totaling $462.1 million and $568.2 million at June 30, 2018 and June 30, 2017, respectively, to hedge foreign currency fluctuations. These contracts mature at various dates prior to June, 2021.

The following table summarizes the amount and location of our derivative financial instruments as of June 30, 2018 and June 30, 2017 (in thousands):


	June 30, 2018		June 30, 2017		Balance Sheet Caption
Foreign currency hedging instruments	$	281	$	2,614	Other assets - current
Foreign currency hedging instruments		-		1,273	Other assets - non current
Foreign currency hedging instruments		(2,373)		(1,127)	Accrued expenses
Foreign currency hedging instruments		(607)		-	Other long-term liabilities
	$	(2,699)	$	2,760

The following table summarizes the amount and location of gains (losses) associated with our derivative financial instruments and other foreign-currency-denominated transactions for the fiscal years ended June 30, 2018 and June 30, 2017, respectively (in thousands):


	Gain /(Loss) Recognized				Income Statement Caption
	Twelve Months Ended June 30,
	2018		2017
Foreign currency hedging instruments	$	(21,294)	$	1,812	Other, net
Other foreign-currency-denominated transactions		19,748		3,622	Other, net
	$	(1,546)	$	5,434

We are exposed to credit-related losses in the event of non-performance by counter parties to financial instruments. We minimize counterparty credit risk by entering into derivative transactions with major financial institutions and we do not expect material losses as a result of default by our counterparties.