Derivative Instruments

9 Months Ended

Sep. 30, 2012

Derivative Instruments

Derivative Instruments

Note 16—Derivative Instruments

The Company is exposed to certain risks related to its ongoing business operations.  The primary risks managed by using derivative instruments are foreign exchange rate risk and interest rate risk. Foreign exchange rate forward contacts were entered into in 2011 to manage the currency exposure on an intercompany loan used to fund an acquisition. The hedge will terminate in November 2012 upon maturity of the intercompany loan.

Derivative instruments are required to be recognized as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets. The Company designates foreign exchange rate forward contacts as cash flow hedges.

As of September 30, 2012 and December 31, 2011, the Company had the following derivative activity related to cash flow hedges:

		Fair Value Assets
	Balance Sheet Location	September 30, 2012		December 31, 2011
Derivatives designated as cash flow hedges:
Forward contracts	Other current assets	$	7,062	$	5,105
Total derivatives designated as cash flow hedging instruments		$	7,062	$	5,105

For the nine months ended September 30, 2012 and 2011, $(235) and nil were recognized in accumulated other comprehensive income (loss) associated with foreign exchange rate forward contracts, respectively.  The amount reclassified from accumulated other comprehensive income (loss) to foreign exchange gain/loss in the accompanying Condensed Consolidated Statements of Income during the nine month periods ended September 30, 2012 and 2011 was not material.