DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2012

DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

4.   DERIVATIVE FINANCIAL INSTRUMENTS

The Company held mark-to-market forward contracts designated as foreign currency cash flow hedges with notional amounts totaling 3.2 billion Japanese yen ($41.1 million as of September 30, 2012) and 8.2 billion Japanese yen ($106.4 million as of September 30, 2011) to hedge forecasted foreign-currency-denominated intercompany transactions.

The contracts held at September 30, 2012 have maturities through September 2013 and accordingly, all unrealized gains and losses on foreign currency cash flow hedges included in accumulated other comprehensive income will be recognized in current earnings over the next 12 months. The pre-tax net (losses)/gains on foreign currency cash flow hedges recorded in current earnings were immaterial for the three- and nine-month periods ended September 30, 2012 and 2011.

In addition, the Company held forward foreign exchange contracts in the amounts of 4.8 million Canadian dollars ($4.4 million as of September 30, 2012), 27.0 million Thailand baht ($0.9 million as of September 30, 2012) and 46.6 million South African rand ($5.6 million as of September 30, 2012) as fair value hedges which are settled in the following month and not designated for hedge accounting to hedge risks associated with foreign-currency-denominated intercompany transactions.