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Derivatives and Hedging
 12 Months Ended
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING
 
The Company enters into a limited number of derivative contracts to offset the potentially negative economic effects of interest rate and foreign exchange movements. The Company accounts for its outstanding derivative contracts in accordance with FASB ASC Topic 815, which requires all derivatives, including derivatives designated as accounting hedges, to be recorded on the balance sheet at fair value.
 
The following tables provide information regarding the Company’s outstanding derivatives contracts as of, and for, the years ended (in thousands, except for number of outstanding contracts):
 
December 31, 2014
Derivative Contract Type
 
Number of
Outstanding
Contracts
 
Contract
Notional
Amount
 
Fair Value
Asset
(Liability) (3)
 
Balance Sheet
Line Item
 
OCI
Unrealized
(Loss), Net
Of Tax
Interest rate swap (1)
 
1

 
$
200,000

 
$
(2,900
)
 
Other liabilities
 
$
(1,740
)
Foreign currency forwards (2)
 
77

 
45,650

 
238

 
Other current liabilities
 
—

Total
 
78

 
$
245,650

 
$
(2,662
)
 
 
 
$
(1,740
)
 
December 31, 2013
Derivative Contract Type
 
Number of
Outstanding
Contracts
 
Contract
Notional
Amount
 
Fair Value
Asset
(Liability) (3)
 
Balance Sheet
Line Item
 
OCI
Unrealized
(Loss), Net
Of Tax
Interest rate swap (1)
 
1

 
$
200,000

 
$
(6,505
)
 
Other liabilities
 
$
(3,903
)
Foreign currency forwards (2)
 
89

 
61,325

 
(60
)
 
Other current assets
 
—

Total
 
90

 
$
261,325

 
$
(6,565
)
 
 
 
$
(3,903
)
 

(1)
The swap is designated as a cash flow hedge of the forecasted interest payments on borrowings. As a result, changes in the fair value of this swap are deferred and are recorded in OCI, net of tax effect (see Note 5 — Debt for additional information).

(2)
The Company has foreign exchange transaction risk since it typically enters into transactions in the normal course of business that are denominated in foreign currencies that differ from the local functional currency. The Company enters into short-term foreign currency forward exchange contracts to offset the economic effects of these foreign currency transaction risks. These contracts are accounted for at fair value with realized and unrealized gains and losses recognized in Other expense, net since the Company does not designate these contracts as hedges for accounting purposes. Substantially all of the outstanding contracts at December 31, 2014 matured by the end of January 2015.

(3)
See Note 12 — Fair Value Disclosures for the determination of the fair value of these instruments.

At December 31, 2014, the Company’s derivative counterparties were all large investment grade financial institutions. The Company did not have any collateral arrangements with its derivative counterparties, and none of the derivative contracts contained credit-risk related contingent features.
 
The following table provides information regarding amounts recognized in the Consolidated Statements of Operations for derivative contracts for the years ended December 31 (in thousands):  
Amount recorded in:
 
2014
 
2013
 
2012
Interest expense (1)
 
$
4.1

 
$
4.0

 
$
3.6

Other expense, net (2)
 
(0.5
)
 
0.1

 
(0.6
)
Total expense
 
$
3.6

 
$
4.1

 
$
3.0

 
 
(1)
Consists of interest expense from interest rate swap contracts.

(2)
Consists of realized and unrealized gains and losses on foreign currency forward contracts.