DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

Interest Rate Swaps

The Company occasionally uses derivative financial instruments to reduce its exposure to adverse fluctuations in interest rates.

On May 21, 2008, the Company entered into four interest rate swap agreements for purposes of managing its risk in interest rate fluctuations. These agreements each hedged a notional amount of $150.0 million of the Company's borrowings under the revolving credit facility. Two of the agreements were effective June 9, 2009 and expired on June 9, 2010. On these two agreements, the Company paid a fixed rate of 3.51% and received a variable rate of interest equal to three-month London Interbank Offered Rate (LIBOR), as determined on the last day of each quarterly settlement period. The other two agreements were effective on June 9, 2010 and expired on June 9, 2011. The Company paid a fixed rate of 4.10% on these two agreements and received a variable rate of interest equal to three-month LIBOR as determined on the last day of each quarterly settlement period.

13.  DERIVATIVE FINANCIAL INSTRUMENTS (continued)

The Company elected to apply hedge accounting to these swap agreements. Changes in the fair value of the effective portion of the interest rate swap agreements was recorded as a component of accumulated other comprehensive income (loss). The net amount received or paid upon quarterly settlements was recorded as an adjustment to interest expense, with a corresponding adjustment in accumulated other comprehensive income (loss).

The Company had no outstanding interest rate swap contracts as of December 31, 2013 and 2012.

The effects of derivatives in cash flow hedging relationships for the years ended December 31, 2013, 2012, and 2011 were as follows (in thousands):

Derivatives in Cash Flow Hedge Relationship	Before-Tax Loss Recognized in OCI on Derivatives (Effective Portion)		Locations of Loss Reclassified from AOCI into Income (Effective Portion)	Before-Tax Loss Reclassified from AOCI into Income (Effective Portion)		Locations of Loss Recognized in Income on Derivatives (Ineffective Portion)	Before-Tax Loss Recognized in Income on Derivatives (Ineffective Portion)
December 31, 2013
Interest rate swap contracts	$	—		$	—		$	—
Total	$	—	Interest Expense	$	—	Other (income) expense, net	$	—
December 31, 2012
Interest rate swap contracts	$	—		$	—		$	—
Total	$	—	Interest Expense	$	—	Other (income) expense, net	$	—
December 31, 2011
Interest rate swap contracts	$	41		$	4,237		$	—
Total	$	41	Interest Expense	$	4,237	Other (income) expense, net	$	—

The Company will continue to review its exposure to interest rate fluctuations and evaluate whether it should manage such exposure through derivative transactions.

Foreign Currency Contracts

From time to time, the Company enters into foreign currency forward exchange contracts and foreign currency option contracts to manage its exposure to foreign exchange rates associated with short-term operating receivables of a Canadian subsidiary that are payable by the U.S. operations. The terms of these contracts are generally less than a year. Changes in the fair value of such contracts are reported in earnings as a component of “Other (income) expense, net.”

The Company entered into two foreign currency option contracts during the year ended December 31, 2013. Both contracts expired unexercised during 2013. The Company did not enter into any foreign currency contracts during the year ended December 31, 2012. There were no outstanding derivative contracts as of December 31, 2013, 2012, or 2011.

During 2011, the Company entered into multiple foreign currency contracts. The effect of derivatives not designated as hedging instruments for the year ended December 31, 2011 was as follows (in thousands):

Derivatives Not Designated as Hedging Instruments	Locations of (Gain) Loss Recognized in Income or Derivative	2011
Foreign currency contracts	Other (income) expense, net	$	(1.153	)
Total		$	(1.153	)