Note 10 - Derivative Instruments Level 1 (Notes)

6 Months Ended

Jun. 30, 2011

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments [Text Block]

Derivative Instruments

The Company uses derivatives to partially offset its market exposure to fluctuations in certain foreign currencies and does not enter into derivatives for speculative or trading purposes.

The notional amount of Company's foreign currency derivatives are summarized as follows (in millions):

	As of
	June 30, 2011		December 31, 2010
Cash flow hedges	$	139.1	$	110.4
Non-designated hedges	151.1		74.4
Total	$	290.2	$	184.8

Cash Flow Hedges

The Company uses foreign currency forward or option contracts to hedge certain forecasted foreign currency transactions relating to cost of services and operating expenses. The derivatives are intended to protect the U.S. Dollar equivalent of the Company's planned cost of services and operating expenses denominated in foreign currencies. These derivatives are designated as cash flow hedges. Execution of these cash flow hedge derivatives typically occurs every month with maturities of less than one year. The effective portion of the derivative's gain or loss is initially reported as a component of accumulated other comprehensive income (loss), and upon occurrence of the forecasted transaction, is subsequently reclassified into the cost of services or operating expense line item to which the hedged transaction relates. The Company records any ineffectiveness of the hedging instruments in interest and other income, net in its consolidated statements of operations. Cash flows from such hedges are classified as operating activities. All amounts within other comprehensive income (loss) are expected to be reclassified into earnings within the next 12 months.

The total fair value of the Company’s derivative assets located in other current assets on the condensed consolidated balance sheet as of June 30, 2011, and December 31, 2010, was $2.3 million and $0.4 million, respectively. The total fair value of the Company’s derivative liabilities located in other accrued liabilities on the condensed consolidated balance sheet as of June 30, 2011, and December 31, 2010, was $0.1 million and $2.6 million, respectively.

During the three and six months ended June 30, 2011, the Company recognized a gain of $1.9 million and $7.1 million,respectively, in accumulated other comprehensive income for the effective portion of its derivative instruments and reclassified a gain of $1.7 million and $2.2 million, respectively, from other comprehensive income to operating expense in the condensed consolidated statements of operations. The Company recognized a loss of $2.9 million and $4.5 million, respectively, in accumulated other comprehensive loss for the effective portion of its derivative instruments and reclassified a loss of $2.6 million and $3.2 million, respectively, from other comprehensive loss to operating expense in the condensed consolidated statements of operations during the three and six months ended June 30, 2010. 

The ineffective portion of the Company's derivative instruments recognized in its condensed consolidated statements of operations was $0.2 million and $0.5 million during the three and six months ended June 30, 2011, respectively, and nil during the three and six months ended June 30, 2010.

Non-Designated Hedges

The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These hedges do not qualify for special hedge accounting treatment. These derivatives are carried at fair value with changes recorded in other income and expense, net. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. The derivatives have maturities of approximately two months.

During the three and six months ended June 30, 2011, the Company recognized a net gain on non-designated derivative instruments within other expense and income, net, on its condensed consolidated statements of operations of $0.4 million and $0.2 million, respectively. The Company recognized a loss of $1.0 million and $1.4 million on non-designated derivative instruments within other expense and income, net, on its condensed consolidated statements of operations during the three and six months ended June 30, 2010, respectively.