11. Foreign currency exchange contracts and hedging

As of March 31, 2024 and March 31, 2023, the Company’s total non-designated and designated derivative contracts had notional amounts totaling approximately $37,425 and $0, respectively, and $8,041 and $2,445, respectively. These contracts were comprised of offsetting contracts with the same counterparty, each expires within one month. During the three months ended March 31, 2024 and 2023, these contracts had, net of tax, an unrealized gain (loss) of $0.

The nonperformance risk of the Company and the counterparty did not have a material impact on the fair value of the derivatives. During the three months ended March 31, 2024, there were no ineffective portions relating to these hedges and the hedges remained effective through their respective settlement dates. During the three months ended March 31, 2023, there were no ineffective portions related to these hedges. As of March 31, 2024, the Company had no designated hedges and four non-designated hedges. As of March 31, 2023, the Company had no designated hedges and one non-designated hedge.