Derivatives

The Company's use of derivative financial instruments is primarily limited to the utilization of interest rate hedges and foreign exchange hedges. The principal objective of such hedges is to minimize the risks and/or costs associated with the Company's operating and financial structure and to manage its exposure to foreign exchange rates. Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements, foreign exchange rate movements, and other identified risks, but may not meet the strict hedge accounting requirements.

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011 ($ in thousands):



	Derivative Assets as of						Derivative Liabilities as of
	June 30, 2012			December 31, 2011			June 30, 2012			December 31, 2011
Derivative	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Other Assets	$	8,660	N/A	$	—	N/A	$	—	Other Liabilities	$	1,342
Cash flow interest rate swap	Other Assets	—		N/A	—		N/A	—		Other Liabilities	1,031
Total		$	8,660		$	—		$	—		$	2,373

The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2012 and 2011 ($ in thousands):



Derivatives Designated in Hedging Relationships	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion)			Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion)		Amount of Gain (Loss) Recognized in Earnings (Ineffective Portion)
For the Three Months Ended June 30, 2012
Cash flow interest rate swap	Interest Expense	$	(85	)	$	68	N/A
For the Three Months Ended June 30, 2011
Cash flow interest rate swap	Interest Expense	$	(594	)	$	176	N/A
For the Six Months Ended June 30, 2012
Cash flow interest rate swap	Interest Expense	$	(124	)	$	240	N/A
For the Six Months Ended June 30, 2011
Cash flow interest rate swap	Interest Expense	$	(830	)	$	353	N/A



		Amount of Gain or (Loss) Recognized in Income on Derivative
	Location of Gain or (Loss) Recognized in Income on Derivative	For the Three Months Ended June 30,					For the Six Months Ended June 30,
Derivatives not Designated in Hedging Relationships		2012		2011			2012		2011
Foreign Exchange Contracts	Other Expense	$	10,191	$	(4,777	)	$	1,332	$	(8,893	)

Non-designated hedges—Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings.

The following table presents the Company's foreign currency derivatives outstanding as of June 30, 2012 ($ in thousands):



Derivative Type	Notional Amount		Notional (USD Equivalent)		Maturity
Sells EUR/Buys USD Forward	€	109,000	$	137,990	July 2012
Sells GBP/Buys USD Forward	£	53,502	$	83,889	July 2012
Sells CAD/Buys USD Forward	C$	50,641	$	49,778	July 2012

Qualifying Cash Flow Hedges—During the six months ended June 30, 2012, the Company terminated its interest rate swaps in conjunction with the early repayment of its secured term loans and will reclassify the $1.1 million loss, included in accumulated other comprehensive income (loss) into "Interest expense" on its Consolidated Statements of Operations over the remaining term of the forecasted hedged transactions (see also Note 9).

Over the next 12 months, the Company expects that $0.6 million of expense and $0.7 million of income related to terminated cash flow hedges, will be reclassified from Accumulated other comprehensive income (loss) into earnings.

Credit risk-related contingent features—The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

In connection with its foreign currency derivatives, as of June 30, 2012 and December 31, 2011, the Company has posted collateral of $9.3 million and $9.6 million, respectively, which is included in "Restricted cash" on the Company's Consolidated Balance Sheets.