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Derivative Instruments
 9 Months Ended
Sep. 30, 2013
Derivative Instruments [Abstract]  
Derivative Instruments
7.Derivative Instruments

The Company utilizes forward foreign currency exchange contracts to manage market risks associated with the fluctuations in foreign currency exchange rates.  It is the Company's policy to use such derivative financial instruments to protect against market risk arising in the normal course of business in order to reduce the impact of these exposures.  The Company minimizes credit exposure by limiting counterparties to nationally recognized financial institutions.

As of September 30, 2013, the Company had foreign exchange contracts outstanding of approximately 0.4 million Pounds Sterling, 17.7 million Euro, and 11.8 million Japanese Yen at fixed rates.  The contracts expire on various dates through May 2016.  At December 31, 2012, the Company had contracts outstanding of approximately 0.8 million Pounds Sterling, 9.9 million Euro, and 61.8 million Japanese Yen at fixed rates.

The Company has not designated any of the foreign exchange contracts outstanding as hedges and has recorded the estimated fair value of the contracts in the consolidated balance sheets as follows:

 
 
September 30,
  
December 31,
 
(in thousands)
 
2013
  
2012
 
 
 
  
 
Asset derivatives
 
  
 
Prepaid expenses and other current assets
 
$
141
  
$
296
 
Other assets
  
7
   
20
 
 
  
148
   
316
 
Liability derivatives
        
Other current liabilities
  
(653
)
  
(190
)
Other liabilities
  
(7
)
  
(149
)
 
  
(660
)
  
(339
)
 
        
Net fair value
 
$
(512
)
 
$
(23
)

The changes in the fair value of the foreign exchange contracts are included in net gain (loss) on derivative instruments in the consolidated statements of operations.

The foreign currency denominated contract receivables, billings in excess of revenue earned and subcontractor accruals that are related to the outstanding foreign exchange contracts are remeasured at the end of each period into the functional currency using the current exchange rate at the end of the period.  The gain or loss resulting from such remeasurement is also included in net gain (loss) on derivative instruments in the consolidated statements of operations.

For the three and nine months ended September 30, 2013 and 2012, the Company recognized a net gain (loss) on its derivative instruments as outlined below:

 
 
Three Months ended
September 30,
  
Nine Months ended
September 30,
 
(in thousands)
 
2013
  
2012
  
2013
  
2012
 
 
 
  
  
  
 
Foreign exchange contracts- change in fair value
 
$
(481
)
 
$
(134
)
 
$
(480
)
 
$
(42
)
Remeasurement of related contract receivables,
 billings in excess of revenue earned, and
 subcontractor accruals
  
403
   
154
   
259
   
78
 
 
                
Gain (loss) on derivative instruments, net
 
$
(78
)
 
$
20
  
$
(221
)
 
$
36