Derivative Financial Instruments

12 Months Ended

Dec. 31, 2012

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

Note 19 - Derivative Financial Instruments

Fair Value Hedge

In order to mitigate foreign exchange rate exposure, the Company entered into several forward contracts during 2011 and 2012. The forward contracts were designated as fair value hedges at inception. The derivative fair value gains or losses from these fair value hedges are recorded as a component of Foreign exchange loss in the Consolidated Statements of Comprehensive Income (Loss). The forward contracts are measured at fair value on a recurring basis and are classified as Level 2 inputs under the fair value hierarchy established in Note 1 – Significant Accounting Policies. In May 2012, the Company discontinued its foreign currency hedging program using forward contracts. The effect on earnings of the derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2012 and 2011 was a loss of $438 and $868, respectively.

Interest Rate Swaps

In order to manage the risk of rising interest rates on a portion of the Company's variable rate revolving debt, the Company entered into two "variable to fixed" interest rate swaps with financial institution counterparties for the total notional amount of $15,000 in May 2010. The swaps were designated as cash flow hedges. The effective portion of the derivative fair value gains or losses from these cash flow hedges was deferred in Accumulated other comprehensive income, net. The Company assessed hedge effectiveness quarterly by comparing the critical terms of the swaps and the debt. Since the Company assessed the hedge to be fully effective, the derivative fair value gains or losses were deferred in Accumulated other comprehensive income, net on the Consolidated Balance Sheets during the affected quarters.  In December 2010, the Company terminated both interest rate swaps.