Foreign Currency Transactions and Derivatives

3 Months Ended

Jun. 30, 2013

Foreign Currency Transactions and Derivatives [Abstract]

Foreign Currency Transactions and Derivatives

Note 3 - Foreign Currency Transactions and Derivatives

The Company is exposed to foreign exchange rate risks related to assets and liabilities that are denominated in non-local currency and current inter-company balances due to and from the Company's foreign subsidiaries. The Company enters into foreign currency forward contracts to sell or buy currencies with the intent of mitigating foreign exchange rate risks related to these balances. The Company does not hedge currency risk related to anticipated revenue or expenses denominated in foreign currency. All foreign exchange derivatives are recognized in the condensed consolidated balance sheets at fair value. See note 4 of the condensed consolidated financial statements for further information.

The foreign currency net gains or (losses) for the three months ended June 30, 2013 and 2012 were ($544,000) and $737,000, respectively. The hedging transaction net gains or (losses) from foreign exchange derivative contracts for the three months ended June 30, 2013 and 2012 were $10,000 and ($213,000), respectively. These amounts were recorded to "administrative and general" in the condensed consolidated statements of comprehensive income.

The Company has derivative contracts maturing through July 2013 to sell $3.2 million and purchase $23.8 million in foreign currencies at June 30, 2013 and had derivative contracts maturing through April 2013 to sell $1.8 million and purchase $15.5 million in foreign currencies at March 31, 2013.