Derivative Instruments

3 Months Ended

Mar. 31, 2013

Derivative Instruments

Derivative Instruments

Note 14—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 2012 to manage the currency exposures on intercompany loans used to fund recent acquisitions. The hedges will terminate in 2013 upon maturity of the respective intercompany loans.

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

As of March 31, 2013 and December 31, 2012, the Company had the following derivative activity related to cash flow hedges:

		Fair Value Assets
	Balance Sheet Location	March 31, 2013			December 31, 2012
Derivatives designated as cash flow hedges:
Forward contracts	Other accrued expenses	$	(1,451	)	$	(6,018	)
Total derivatives designated as cash flow hedging instruments		$	(1,451	)	$	(6,018	)

For the three months ended March 31, 2013 and 2012, $(28) and $(262) 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 three month periods ended March 31, 2013 and 2012 was not material.