Foreign Exchange Instruments

9 Months Ended

Sep. 30, 2011

Foreign Exchange Instruments [Abstract]

Foreign Exchange Instruments

Note 5. Foreign Exchange Instruments

During the quarter ended June 30, 2011, we entered into a foreign currency forward-exchange contract in an effort to minimize the risk of future fluctuations in the exchange rate between Australian dollars and Japanese Yen. The foreign currency forward-exchange contract was directly related to an asset purchase commitment by our Australian subsidiary. We do not utilize derivative financial instruments for speculative or trading purposes.

As of September 30, 2011, the forward contract to sell Australian dollars to Japanese Yen had a notional value of AU$858,000 and an exchange rate of one Australian dollar to 83.35 Japanese Yen. As of September 30, 2011, the fair value of the forward contact was approximately $101,000, which is included in prepaid expenses and other current assets on our condensed consolidated balance sheet. During the three and nine months ended September 30, 2011, the change in the fair value of this forward exchange contract resulted in a gain of approximately $121,000 and $106,000, respectively, which is included in other, net on our condensed consolidated statements of operations.