12. Foreign currency exchange contracts and hedging

As of September 30, 2023 and September 30, 2022, the Company’s total non-designated and designated derivative contracts had notional amounts totaling approximately $10,414 and $1,613, respectively, and $9,537 and $9,730, respectively. These contracts were comprised of offsetting contracts with the same counterparty, each expire within one to three months. During the nine months ended September 30, 2023 and 2022, these contracts had, net of tax, an unrealized gain of $53 and an unrealized loss of $463, respectively.

The nonperformance risk of the Company and the counterparty did not have a material impact on the fair value of the derivatives. During the nine months ended September 30, 2023, there were no ineffective portions relating to these hedges and the hedges remained effective through their respective settlement dates. During the nine months ended September 30, 2022, there were three ineffective portions relation to these hedges. As of September 30, 2023, the Company had three designated hedges and one non-designated hedge. As of September 30, 2022, the Company had three designated hedges and three non-designated hedges.