Forward Currency Contracts

6 Months Ended

Jun. 30, 2011

Foreign Currency [Abstract]

Foreign Currency Disclosure [Text Block]

Forward Currency Contracts

Substantially all of the Company's foreign subsidiaries use the local currency of its respective countries as its functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated at the average exchange rates for the reported period. Gains and losses resulting from translation are recorded as a component of accumulated other comprehensive income (loss) within stockholders' equity. Gains and losses resulting from foreign currency transactions are recognized as other (expense) income, net within the statement of operations.

The Company enters into short-term foreign currency forward contracts to offset the foreign exchange gains and losses generated by the re-measurement of certain assets and liabilities recorded in non-functional currencies. Changes in the fair value of these derivatives, as well as re-measurement gains and losses, are recognized in current earnings in other (expense) income, net. The fair value of the forward currency contracts are included on the balance sheet in prepaid expenses and other current assets. For the three and six months ended June 30, 2011, the underlying net loss was deemed to be immaterial.

The Company's foreign currency forward contracts include credit risk to the extent that its counterparties may be unable to meet the terms of the agreements. The Company minimizes counterparty credit (or repayment) risk by entering into transactions only with major financial institutions of investment grade credit rating.