Foreign Currency Exchange Rate Risk

9 Months Ended

Sep. 30, 2011

Foreign Currency Exchange Rate Risk

Note 5. 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 was as follows (in thousands):

	Three Months Ended September 30,				Nine Months  Ended September 30,
	2011		2010		2011		2010
Net loss	$	3,181	$	2,080	$	7,858	$	4,370

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 notional amounts of the Company’s outstanding foreign currency forward contracts by currency (in thousands):

	September 30, 2011		December 31, 2010
Euro	$	28,512	$	41,022
Swedish Kronor		26,400		23,212
British Pound Sterling		16,412		1,551
Australian Dollar		718		1,017
Danish Kroner		182		—
	$	72,224	$	66,802

At September 30, 2011, all of the Company’s foreign currency forward contracts had maturities of 45 days or less.