Note 5. Derivative Instruments

As part of the Company’s foreign currency risk management program, the Company uses foreign currency forward contracts to mitigate the volatility related to fluctuations in the foreign exchange rates. These foreign currency forward contracts are not designated as hedging instruments. Derivative transactions such as foreign currency forward contracts are measured in terms of the notional amount; however, this amount is not recorded on the consolidated balance sheets and is not, when viewed in isolation, a meaningful measure of the risk profile of the derivative instruments. The notional amount is generally not exchanged but is used only as the underlying basis on which the value of foreign exchange payments under these contracts is determined. As of December 31, 2023 and 2022, the Company had 12,737 and 11,816 open foreign exchange contracts, respectively. As of December 31, 2023 and 2022, the Company had foreign currency forward contracts outstanding with a notional amount of $36.1 million and $54.7 million, respectively.

The Company records all derivative instruments in the consolidated balance sheets at their fair values. For the year ended December 31, 2023, the Company recorded an asset of less than $0.1 million and for the year ended December 31, 2022, the Company recorded a liability of $0.1 million related to outstanding foreign exchange contracts. The Company recognized a loss of $2.0 million, $1.6 million and $0.8 million during the years ended December 31, 2023, 2022 and 2021, respectively, which was included in the general and administrative line within the consolidated statements of operations and comprehensive loss.