Derivatives and Hedging Activities

3 Months Ended

Sep. 30, 2011

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 16: Derivatives and Hedging Activities

We enter into foreign currency forward contracts to reduce the impact of adverse fluctuations on earnings associated with foreign currency exchange rate changes. We do not enter into any derivative transactions for speculative purposes. These contracts are not designated as cash flow, fair value, or net investment hedges as defined under authoritative guidance on accounting for derivative instruments and hedging activities. These contracts are marked-to-market with changes in fair value recorded in the condensed consolidated statements of operations in miscellaneous income. These contracts are entered into for periods consistent with the expected currency transaction exposures, generally three to six months. Any gains and losses on the fair value of these contracts are expected to substantially offset corresponding losses and gains on the underlying transactions.

As of September 30, 2011, there were seven currency contracts outstanding involving our Japanese and German operations with notional amounts aggregating $3,160. These foreign currency hedges are not designated as hedging instruments. For the three months ended September 30, 2011 and 2010, we recognized net unrealized gains of $39 and $3, respectively, from foreign currency forward contracts. These unrealized gains and losses are substantially offset by foreign exchange losses and gains on intercompany balances recorded by our subsidiaries and are recorded in miscellaneous income on our condensed consolidated statements of operations.

The following table summarizes the fair value of derivative instruments as of September 30, 2011 and 2010:

Derivatives not designated as hedging instruments			Balance Sheet Location
September 30, 2011	Number of foreign exchange contracts:	7	Other accrued liabilities	$43
September 30, 2010	Number of foreign exchange contracts:	4	Other accrued liabilities	$67