Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 15: Derivatives and Hedging Activities

We enter into foreign currency forward contracts to reduce the impact of adverse fluctuations on income associated with foreign currency exchange rate changes. We do not enter into any derivative transactions for speculative purposes. The contracts are not designated as cash flow, fair value, or net investment hedges as defined under authoritative guidance on accounting for derivative instruments and hedging activities. These contracts are marked-to-market with changes in fair value recorded in the condensed consolidated statements of operations in “Miscellaneous income (expense), net.” The contracts are entered into for periods consistent with the expected currency transaction exposures, generally three to six months. Any gains and losses on the fair value of these contracts are expected to substantially offset corresponding losses and gains on the underlying transactions.

As of March 31, 2013, there were nine currency contracts outstanding involving our Japanese operation with notional amounts aggregating $4,200. These foreign currency hedges are not designated as hedging instruments. For the three months ended March 31, 2013 and 2012, we recognized net unrealized gains of $47 and $90, respectively, from foreign currency forward contracts. For the nine months ended March 31, 2013 and 2012, we recognized net unrealized gains of $263 and $160, respectively, from foreign currency forward contracts. These unrealized losses and gains are essentially offset by foreign exchange gains and losses on intercompany balances recorded by our subsidiaries and are recorded in “Miscellaneous income (expense), net” in our condensed consolidated statements of operations.

The following table summarizes the fair value of derivative instruments as of March 31, 2013 and June 30, 2012:

Derivatives not designated as hedging instruments			Balance Sheet Location
March 31, 2013	Number of foreign exchange contracts:	9	Prepaid expenses, prepaid taxes and other current assets	$246
June 30, 2012	Number of foreign exchange contracts:	9	Prepaid expenses, prepaid taxes and other current assets	$  14
			Other accrued expenses	$  17