Foreign Currency Forward Exchange Contracts

6 Months Ended

Jun. 30, 2011

Foreign Currency Forward Exchange Contracts [Abstract]

Foreign Currency Forward Exchange Contracts

14. Foreign Currency Forward Exchange Contracts

We use forward exchange contracts to hedge certain of the foreign currency transaction exposures primarily related to our United Kingdom operations. We estimate our projected revenues and purchases in certain foreign currencies or locations and will hedge a portion or all of the anticipated long or short positions. As of June 30, 2011, we did not have any derivatives designated as hedging instruments. As of June 30, 2010, our forward foreign exchange contracts have been marked-to-market and the fair value of contracts recorded in the consolidated balance sheets with the offsetting non-cash gain or loss recorded in our consolidated statements of operations. We do not hold or issue foreign exchange options or forward contracts for trading purposes.

The following table summarizes the effect of derivative instruments on the consolidated statements of operations for derivatives not designated as hedging instruments (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
	Location of Gain	2011		2010		2011		2010
	Recognized in Income on	Amount of Gain Recognized in Income				Amount of Gain Recognized in Income
	Derivatives	on Derivatives				on Derivatives
Foreign exchange contracts	Other income	$	—	$	1,287	$	—	$	2,355