Derivatives and Hedging

9 Months Ended

Sep. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 10 — Derivatives and Hedging

The Company enters into a limited number of derivative contracts to offset the potentially negative economic effects of interest rate and foreign exchange movements. The Company accounts for its outstanding derivative contracts in accordance with FASB ASC Topic 815, which requires all derivatives, including derivatives designated as accounting hedges, to be recorded on the balance sheet at fair value. The following tables provide information regarding the Company’s outstanding derivatives contracts (in thousands, except for number of outstanding contracts) as of the dates indicated:

September 30, 2012
Derivative Contract Type	Number of Outstanding Contracts		Notional Amounts		Fair Value Asset (Liability) (4)			Balance Sheet Line Item	Unrealized Loss Recorded in OCI
Interest rate swap (1)		1	$	200,000	$	(11,000	)	Other liabilities	$	(6,617	)
Foreign currency forwards (2)		30		40,530		(240	)	Accrued liabilities		—
Total		31	$	240,530	$	(11,240	)		$	(6,617	)

December 31, 2011
Derivative Contract Type	Number of Outstanding Contracts		Notional Amounts		Fair Value Asset (Liability) (4)			Balance Sheet Line Item	Unrealized Loss Recorded in OCI
Interest rate swap (1)		1	$	200,000	$	(9,891	)	Other liabilities	$	(5,934	)
Interest rate swaps (3)		2		30,750		(98	)	Other liabilities		—
Foreign currency forwards (2)		60		99,585		272		Other current assets		—
Total		63	$	330,335	$	(9,717	)		$	(5,934	)

(1)	The Company has designated this swap as a cash flow hedge of the forecasted interest payments on borrowings (see Note 7 — Debt). As a result, changes in fair value of this swap are deferred and are recorded in OCI, net of tax effect.
(2)	The Company has foreign exchange transaction risk since it typically enters into transactions in the normal course of business that are denominated in foreign currencies that differ from the local functional currency. The Company enters into short-term foreign currency forward exchange contracts to offset the economic effects of these foreign currency transaction risks. These contracts are accounted for at fair value with realized and unrealized gains and losses recognized in Other expense, net since the Company does not designate these contracts as hedges for accounting purposes. Substantially all of the outstanding contracts at September 30, 2012 matured by the end of October 2012.
(3)	These swaps matured in January 2012. Changes in the fair value of these swaps were recognized in earnings.
(4)	See Note 11 — Fair Value Disclosures for the determination of the fair value of these instruments.

The Company’s derivative counterparties are all large investment grade financial institutions. The Company did not have any collateral arrangements with its derivative counterparties, and none of the derivative contracts contained credit-risk guarantees.

The following table provides information regarding derivative gains and losses that have been recognized in the Condensed Consolidated Statements of Operations for the periods indicated (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
Amount recorded in:	2012		2011			2012			2011
Interest expense, net (1)	$	907	$	1,022		$	2,657		$	3,100
Other expense (income), net (2)		36		(1,976	)		(563	)		1,794
Total expense (income), net	$	943	$	(954	)	$	2,094		$	4,894

(1)	Consists of interest expense from interest rate swap contracts.
(2)	Consists of realized and unrealized gains and losses on foreign currency forward contracts.