Derivative Financial Instruments

12 Months Ended

Dec. 31, 2011

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

Note 15—Derivative Financial Instruments

As part of our currency exchange rate risk management strategy, we enter into certain derivative foreign currency forward contracts that do not meet the GAAP criteria for hedge accounting, but which have the impact of partially offsetting certain foreign currency exposures. We account for these forward contracts on a full mark-to-market basis and report the related gains or losses in currency exchange losses (gains) in the consolidated statement of income. At December 31, 2011, the notional amount of open forward contracts was $0.7 million and the unrealized loss on these contracts was immaterial. All open forward contracts will mature during the first quarter of 2012.

The following table presents the balance sheet location and fair value of assets and liabilities associated with derivative financial instruments.

(In thousands)	December 31 2011		December 31 2010
Derivaties not designated as hedging instruments
Foreign exchange contracts:
Prepaid expenses and other current assets	$	—	$	4
Other current liabilities		50		—

The following table presents the income statement location and impact of derivative financial instruments:

(In thousands)	Income Statement Location		Loss Recognized in Income
			Year ended December 31
			2011		2010
Derivatives not designated as hedging instruments
Foreign exchange contracts		Currency exchange losses (gains)	$	1,282	$	274