FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2011

Financial Instruments [Abstract]

Financial Instruments

12.          FINANCIAL INSTRUMENTS

Interest Rate Derivatives - Cash Flow Hedges

The Company has entered into various interest rate lock agreements and forward starting interest rate swap agreements to hedge part of the Company's interest rate exposure associated with the variability in future cash flows attributable to changes in interest rates. Prior to their maturity or settlement, the Company records derivative financial instruments, which have been designated as cash flow hedges, as either an asset or liability measured at their fair value. The effective portion of changes in the fair value of these derivatives represent deferred gains or losses that are recorded in accumulated other comprehensive (loss) income that are reclassified from accumulated other comprehensive (loss) income to the statement of operations in the same period or periods during which the hedged transaction affects earnings, which is when the Company recognizes interest expense on the hedged cash flows. The total net loss, net of taxes, recognized in accumulated other comprehensive (loss) income, related to the Company's cash flow hedges as of December 31, 2011 and December 31, 2010 was $7.7 million and $6.6 million, respectively. The loss recognized on the Company's cash flow hedges for the years ended December 31, 2011, 2010 and 2009, as a result of ineffectiveness, was not material. The net amount of deferred losses on cash flow hedges that is expected to be reclassified from accumulated other comprehensive (loss) income into earnings within the next twelve months is $1.3 million.

Interest Rate Derivatives – Fair Value Hedges

The Company maintains various fixed-to-variable interest rate swaps which have an aggregate notional amount of $550 million and variable interest rates based on six-month LIBOR plus 0.54% and one-month LIBOR plus 1.33%.

These derivative financial instruments are accounted for as fair value hedges of a portion of the Senior Notes due 2016 and a portion of the Senior Notes due 2020 and effectively convert that portion of the debt into variable interest rate debt.  The Company recognizes the changes in the fair value of both the fixed-to-variable interest rate swaps and the related underlying debt obligations in other income (expense), net as equal and offsetting gains and losses.These interest rate swaps are classified as assets with fair values of $56.5 million and $10.5 million at December 31, 2011 and 2010, respectively.Since inception, the fair value hedges have been effective; therefore, there is no impact on earnings for the years ended December 31, 2011, 2010 and 2009 as a result of hedge ineffectiveness.

Foreign Currency Forward Contracts

The Company uses foreign exchange forward contracts to manage its risk associated with foreign currency denominated cash flows.  As of December 31, 2011, the total notional amount of foreign currency forward contracts in U.S. dollars was $37.9 million and principally consisted of contracts in Swedish krona.  

A summary of the fair values of derivative instruments in the consolidated balance sheets is stated in the table below (in thousands):

	December 31, 2011		December 31, 2010
	Balance Sheet Classification	Fair Value	Balance Sheet Classification	Fair Value
Derivatives Designated as Hedging Instruments
Asset Derivatives:
Interest rate swaps	Other assets	$      56,520	Other assets	$      10,483
Derivatives Not Designated as Hedging Instruments
Asset Derivatives:
Foreign currency forward contracts	Other current assets	180	Other current assets	4,527
Liability Derivatives:
Foreign currency forward contracts	Other current liabilities	1,648	Other current liabilities	464
Total Net Derivatives Asset		$      55,052		$      14,546