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Foreign Currency Exchange Rate Risk
 6 Months Ended
Jun. 30, 2012
Foreign Currency [Abstract]  
Foreign Currency Exchange Rate Risk
Foreign Currency Exchange Rate Risk
The gains and losses related to outstanding derivative instruments recorded in other income are offset by the reciprocal gains and losses from the underlying assets or liabilities which originally gave rise to the exposure. The net amount of these gains and losses for the three and six months ended June 30, 2012 were a loss of $1.4 million and a gain of $0.3 million, respectively. The net amount of these gains and losses for the three and six months ended June 30, 2011 were a loss of less than $0.1 million and a loss of $4.5 million, respectively.
 
The net notional amounts are used to measure the volume of foreign currency forward contracts and do not represent exposure to foreign currency gains or losses. The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency (in thousands):

Note 5.
Foreign Currency Exchange Rate Risk - (Continued)
 
June 30,
2012
 
December 31,
2011
Euro
$
2,196

 
$
19,640

Swedish kronor
7,042

 
18,091

British pound sterling
3,541

 
3,050

Australian dollar
1,570

 
609

Danish kroner
—

 
174

Japanese yen
6,112

 
3,581

Norwegian krone
1,169

 
—

 
$
21,630

 
$
45,145


At June 30, 2012, all of the Company’s foreign currency forward contracts had maturities of 45 days or less.
On June 29, 2012, the Company entered into two zero-cost collar options to limit the Company's exposure to changes in the US Dollar/Euro and the US Dollar/Swedish Kronor exchange rates. The zero-cost collar option hedges are designed to protect the Company as the US Dollar strengthens, but also provide the Company with some flexibility if the US Dollar weakens. The foreign exchange hedging structure is set up, generally, on a six month time horizon. These options are not designated as hedging instruments and accordingly, gains and losses related to these options will be recorded as a component of net income.