Derivative Financial Instruments

6 Months Ended

Jun. 30, 2013

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 expense (income) are offset, in general, by the reciprocal gains and losses from the underlying assets or liabilities which originally gave rise to the exposure. The net amount of these realized and unrealized gains and losses for the three and six months ended June 30, 2013, were losses of $5.0 million and $3.5 million, respectively. 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.

Note 5. Derivative Financial Instruments - (Continued)

The following table provides volume information about the Company's foreign currency hedge volume. The information provided is in United States dollar equivalent amounts. The table presents the net notional amounts at contract exchange rates (in thousands):

	June 30, 2013		December 31, 2012
Swedish kronor	$	86,156	$	98,385
British pound sterling	4,793		15,619
Australian dollar	4,075		7,022
Japanese yen	4,122		5,157
Euro	17,777		2,232
Brazilian real	4,240		—
Other	843		622
	$	122,006	$	129,037

At June 30, 2013, the Company’s foreign currency forward contracts, in general, had maturities of six months or less.

The fair value carrying amount of the foreign currency forward contracts included in the Consolidated Balance Sheets are as follows (in thousands):

	June 30, 2013				December 31, 2012
	Other Current Assets		Other Current Liabilities		Other Current Assets		Other Current Liabilities
Foreign exchange contracts	$	32	$	1,955	$	2,106	$	229

Interest Rates

The Company's outstanding long-term debt at June 30, 2013 consists of fixed rate notes and a floating rate term loan. The Company maintains its floating rate revolver for flexibility to fund working capital needs and for other uses of cash. Interest expense on the Company's floating rate debt is typically calculated based on a fixed spread over a reference rate, such as LIBOR (also known as the Eurodollar rate). Therefore, fluctuations in market interest rates will cause interest expense increases or decreases on a given amount of floating rate debt.

The Company is managing a portion of its interest rate risk related to floating rate debt by entering into interest rate swaps in which the Company receives floating rate payments and makes fixed rate payments. The impact of the interest rate swaps is to fix the floating rate basis for the calculation of interest on the term loan at the levels indicated in the table below. The effective interest rate paid is equal to the fixed rates shown below plus the credit spread then in effect. At June 30, 2013, the effective interest rate on the term loan was 2.49 percent. As of June 30, 2013, the following interest rate swaps were outstanding:

Contract Date	Notional Amount (in millions)		Fixed Rate		Effective Date	Maturity Date
March 15, 2013	$	73.1	1.0165	%	April 5, 2013	March 31, 2019
March 29, 2013	73.1		0.97	%	April 5, 2013	March 31, 2019

Interest rate swaps are recorded as an asset or liability in the Company's Consolidated Balance Sheet at fair value. Gains and losses on cash flow hedges are recorded as an adjustment to accumulated other comprehensive (loss) earnings, except that any gains and losses on ineffectiveness of cash flow hedges would be recorded as an adjustment to other expense (income).

The fair value carrying amount of the Company's interest rate swaps of $2.5 million has been recorded to other assets in the Consolidated Balance Sheet as of June 30, 2013.