Derivative Financial Instruments

12 Months Ended

Dec. 31, 2012

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

7. DERIVATIVE FINANCIAL INSTRUMENTS

We transact business in various foreign countries and are therefore exposed to foreign currency exchange rate risk inherent in revenues, costs, and monetary assets and liabilities denominated in non-functional currencies. We have entered into foreign currency exchange forward contract and currency swap derivative instruments to selectively protect against volatility in the value of non-functional currency denominated monetary assets and liabilities, and of future cash flows caused by changes in foreign currency exchange rates. We do not designate thesederivative instruments as hedging instruments under the accounting standards for derivatives and hedging. Accordingly, these instruments are recorded at fair value as a derivative asset or liability on the balance sheet with their corresponding change in fair value recognized in Foreign currency transaction (gains) losses, net, in our consolidated statements of operations. For purposes of the cash flow statement, the Company classifies the cash flows at settlement from undesignated instruments in the same category as the cash flows from the related hedged items, generally within Cash provided by operating activities.

The following table summarizes the notional amounts of the outstanding foreign currency exchange contracts at December 31, 2012 and 2011. The notional amounts of the derivative financial instruments shown below are denominated in their U.S. dollar equivalents and represent the amount of all contracts of the foreign currency specified. These notional values do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the foreign currency exchange risks.

	December 31,
($ thousands)	2012		2011
Foreign currency exchange forward contracts by currency:
Japanese Yen	$	112,500	$	27,500
Euro		5,159		10,055
Australian Dollar		4,178		-
Mexican Peso		11,400		6,500
Pound Sterling		8,742		6,345
New Zealand Dollar		1,137		-
Total notional value, net	$	143,116	$	50,400
Latest maturity date	December 2015		December 2012

The following table presents the amounts affecting the consolidated statements of income from derivative instruments for the years ended December 31, 2012 and 2011:

	Year ended December 31,
($ thousands)	2012		2011		Location of (Gain) Loss Recognized in Income on Derivatives
Derivatives not designated as hedging instruments:
Foreign currency exchange forwards	$	(7,200)	$	540	Foreign currency transaction (gains) losses, net