|
Note 10. Derivative Financial Instruments (Tables)
|
3 Months Ended |
|
Mar. 31, 2013
|
| Derivative [Line Items] |
|
| Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
The following tables present the fair value of derivative instruments included in our condensed consolidated balance sheets as of March 31, 2013 and December 31, 2012 (in thousands): | | | | | | | | | | | | | | | | March 31, 2013 | | | Prepaid Expenses and Other Current Assets | | Other Current Liabilities | | Other Liabilities | Derivatives designated as hedging instruments under ASC 815: | | | | | Cross-currency swap contract | | — |
| | 621 |
| | 2,796 |
| Interest rate swap contracts | | — |
| | 445 |
| | 713 |
| Total derivatives designated as hedging instruments | | $ | — |
| | $ | 1,066 |
| | $ | 3,509 |
| | | | | | | | Derivatives not designated as hedging instruments under ASC 815: | | |
| | |
| Foreign exchange forward contracts | | $ | 3,450 |
| | $ | 3,834 |
| | $ | — |
| Total derivatives not designated as hedging instruments | | $ | 3,450 |
| | $ | 3,834 |
| | $ | — |
| Total derivative instruments | | $ | 3,450 |
| | $ | 4,900 |
| | $ | 3,509 |
|
| | | | | | | | | | | | | | | | December 31, 2012 | | | Prepaid Expenses and Other Current Assets | | Other Current Liabilities | | Other Liabilities | Derivatives designated as hedging instruments under ASC 815: | | | | | Foreign exchange forward contracts | | $ | 2,121 |
| | $ | — |
| | $ | — |
| Cross-currency swap contract | | — |
| | 316 |
| | 1,582 |
| Interest rate swap contracts | | — |
| | 473 |
| | 994 |
| Total derivatives designated as hedging instruments | | $ | 2,121 |
| | $ | 789 |
| | $ | 2,576 |
| | | | | | | | Derivatives not designated as hedging instruments under ASC 815: | | |
| | |
| Foreign exchange forward contracts | | $ | 5,109 |
| | $ | 5,036 |
| | $ | — |
| Total derivatives not designated as hedging instruments | | $ | 5,109 |
| | $ | 5,036 |
| | $ | — |
| Total derivative instruments | | $ | 7,230 |
| | $ | 5,825 |
| | $ | 2,576 |
|
|
| Offsetting Derivatives [Table Text Block] |
The impact of offsetting derivative instruments designated as hedging instruments under ASC 815 is shown below (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | March 31, 2013 | | | | | | | | | Gross Amounts Not Offset in Consolidated Balance Sheet | | | | | Gross Asset (Liability) | | Gross Offset in Consolidated Balance Sheet | | Net Amount Recognized in Financial Statements | | Financial Instruments | | Cash Collateral Pledged | | Net Amount | Cross-currency swap contracts | | $ | (3,417 | ) | | — |
| | (3,417 | ) | | — |
| | — |
| | $ | (3,417 | ) | Interest rate swap contracts | | $ | (1,158 | ) | | — |
| | (1,158 | ) | | — |
| | — |
| | $ | (1,158 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | December 31, 2012 | | | | | | | | | Gross Amounts Not Offset in Consolidated Balance Sheet | | | | | Gross Asset (Liability) | | Gross Offset in Consolidated Balance Sheet | | Net Amount Recognized in Financial Statements | | Financial Instruments | | Cash Collateral Pledged | | Net Amount | Foreign exchange forward contracts | | $ | 2,121 |
| | — |
| | 2,121 |
| | — |
| | — |
| | $ | 2,121 |
| Cross-currency swap contracts | | $ | (1,898 | ) | | — |
| | (1,898 | ) | | — |
| | — |
| | $ | (1,898 | ) | Interest rate swap contracts | | $ | (1,467 | ) | | — |
| | (1,467 | ) | | — |
| | — |
| | $ | (1,467 | ) |
|
| Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) |
The following tables present the amounts related to derivative instruments designated as cash flow hedges under ASC 815 affecting accumulated other comprehensive income (loss) and our condensed consolidated statements of operations for the three months ended March 31, 2013 and March 31, 2012 (in thousands): | | | | | | | | | | | | | | | | | | | | Foreign Exchange Forward Contracts | | Interest Rate Swap Contract | | Cross Currency Swap Contract | | Total | Balance in other comprehensive income (loss) at December 31, 2012 | | $ | 8,980 |
| | $ | (1,467 | ) | | $ | (8,031 | ) | | $ | (518 | ) | Amounts recognized in other comprehensive income (loss) | | 4,135 |
| | 100 |
| | (1,604 | ) | | 2,631 |
| Amounts reclassified to net sales as a result of forecasted transactions being probable of not occurring | | (13,115 | ) | | — |
| | — |
| | (13,115 | ) | Amounts reclassified to earnings impacting: | | | | | | | | | Foreign currency gain | | — |
| | — |
| | 1,974 |
| | 1,974 |
| Interest expense | | — |
| | 209 |
| | 85 |
| | 294 |
| Balance in other comprehensive income (loss) at March 31, 2013 | | — |
| | (1,158 | ) | | (7,576 | ) | | (8,734 | ) |
| | | | | | | | | | | | | | | | | | | | Foreign Exchange Forward Contracts | | Interest Rate Swap Contracts | | Cross Currency Swap Contract | | Total | Balance in other comprehensive income (loss) at December 31, 2011 | | $ | 33,751 |
| | $ | (2,571 | ) | | $ | (5,899 | ) | | $ | 25,281 |
| Amounts recognized in other comprehensive (loss) income | | (11,341 | ) | | (914 | ) | | 4,347 |
| | (7,908 | ) | Amounts reclassified to earnings impacting: | | | | | | | | | Net sales | | (6,710 | ) | | — |
| | — |
| | (6,710 | ) | Foreign currency loss | | — |
| | — |
| | (5,003 | ) | | (5,003 | ) | Interest expense | | — |
| | 244 |
| | 71 |
| | 315 |
| Balance in other comprehensive income (loss) at March 31, 2012 | | 15,700 |
| | (3,241 | ) | | (6,484 | ) | | 5,975 |
|
|
| Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance |
The following table presents the amounts related to derivative instruments not designated as cash flow hedges under ASC 815 affecting our condensed consolidated statements of operations for the three months ended March 31, 2013 and March 31, 2012 (in thousands):
| | | | | | | | | | | | | | Amount of Gain (Loss) Recognized in Income on Derivatives | | | | Three Months Ended | | Three Months Ended | Derivatives not designated as hedging instruments under ASC 815: | Location of Gain (Loss) Recognized in Income on Derivatives | | March 31,
2013 | | March 31,
2012 | Foreign exchange forward contracts | Foreign currency gain (loss) | | $ | 1,117 |
| | $ | 7,354 |
| Foreign exchange forward contracts | Cost of sales | | $ | (88 | ) | | $ | 808 |
|
|
|
Designated as Hedging Instrument [Member]
|
|
| Derivative [Line Items] |
|
| Schedule of Notional Amounts of Outstanding Derivative Positions |
As of December 31, 2012, the notional values associated with our foreign exchange forward contracts qualifying as cash flow hedges were as follows (notional amounts and U.S. dollar equivalents in millions):
| | | | | | December 31, 2012 | | | | | | Currency | | Notional Amount | | USD Equivalent | Canadian dollar | | CAD 192.0 | | $195.1 |
|
|
Not Designated as Hedging Instrument [Member]
|
|
| Derivative [Line Items] |
|
| Schedule of Notional Amounts of Outstanding Derivative Positions |
As of March 31, 2013 and December 31, 2012, the notional values of our foreign exchange forward contracts that do not qualify for hedge accounting under ASC 815 were as follows (notional amounts and U.S. dollar equivalents in millions): | | | | | | | | March 31, 2013 | Transaction | | Currency | | Notional Amount | | USD Equivalent | Purchase | | Euro | | €186.5 | | $239.0 | Sell | | Euro | | €170.4 | | $218.3 | Sell | | Australian dollar | | AUD 9.1 | | $9.5 | Purchase | | Malaysian ringgit | | MYR 128.8 | | $41.2 | Sell | | Malaysian ringgit | | MYR 64.8 | | $20.7 | Purchase | | Canadian dollar | | CAD 9.2 | | $9.0 | Sell | | Canadian dollar | | CAD 202.4 | | $199.0 |
|