DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2015

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 of 1.3 billion Japanese yen and 15.0 million euros ($10.6 million and $13.5 million, respectively) as of June 30, 2015 and 1.9 billion Japanese yen and 10.0 million euros ($18.7 million and $13.7 million, respectively) as of June 30, 2014, to hedge forecasted foreign-currency-denominated intercompany transactions.

The contracts held at June 30, 2015 have maturities through September 2016 and accordingly, all unrealized gains and losses on foreign currency cash flow hedges included in accumulated other comprehensive loss will be recognized in current earnings over the next 15 months. The pre-tax net gains on foreign currency cash flow hedges reclassified from accumulated other comprehensive loss to the income statement were $0.8 million and $0.3 million, respectively, for the three-month periods ended June 30, 2015 and 2014 and $2.0 million and $0.7 million, respectively, for the six-month periods ended June 30, 2015 and 2014. The corresponding tax effects of these transactions were recorded in provision for income tax expense. As of June 30, 2015 and December 31, 2014, there were $0.1 million and $1.1 million, respectively, of unrealized gains included in accumulated other comprehensive loss related to foreign currency cash flow hedges. The remaining $63.3 million and $52.6 million as of June 30, 2015 and December 31, 2014, respectively, in accumulated other comprehensive loss are related to cumulative translation adjustments.