Derivative Instruments

3 Months Ended

Mar. 31, 2012

Derivative Instruments [Abstract]

Derivative Instruments

11. Derivative Instruments

The Company periodically uses derivative instruments to manage risk from changes in market conditions that may affect the Company's financial performance. The Company primarily uses derivative instruments to manage its primary market risks, which are interest rate risk and foreign currency exchange rate risk.

During 2011, the Company used interest rate cap agreements for the purpose of managing interest rate exposure on its floating rate debt. For derivatives designated as cash flow hedges, the effective portions of changes in the estimated fair value of the derivative are reported in "Accumulated other comprehensive income (loss)" (or "OCI") and are subsequently reclassified into earnings when the hedged item affects earnings. The change in the estimated fair value of the ineffective portion of the hedge, if any, was recorded as income or expense.

The Company uses forward currency exchange contracts to minimize the effects of foreign currency risk in the United Kingdom and Australia, and for the three months ended March 31, 2011, in Mexico. The Company's forward currency exchange contracts are non-designated derivatives. Any gain or loss resulting from these contracts is recorded as income or loss and is included in "Foreign currency transaction gain (loss)" in the Company's consolidated statements of income. The Company does not currently manage its exposure to risk from foreign currency exchange rate fluctuations through the use of forward currency exchange contracts in Canada. As the Company's foreign operations continue to grow, management will continue to evaluate and implement foreign exchange rate risk management strategies.

The fair values of the Company's derivative instruments at March 31, 2012 and 2011 and December 31, 2011 were as follows (dollars in thousands):

		Balance at
Assets	Balance Sheet Location	March 31, 2012					March 31, 2011					December 31, 2011
		Notional Amount		Fair Value			Notional Amount		Fair Value			Notional Amount		Fair Value
Derivatives designated as hedges:
Interest rate contracts	Prepaid expenses and other assets	$	—	$	—		$	30,000	$	1		$	15,000	$	—
Non-designated derivatives:
Forward currency exchange contracts	Prepaid expenses and other assets	$	76,671	$	(396	)	$	51,246	$	(372	)	$	80,375	$	260

The following table presents information on the effect of derivative instruments on the consolidated results of operations and OCI for the three months ended March 31, 2012 and 2011 (dollars in thousands)

	Losses Recognized in Income						Gains Recognized in OCI				Gains (Losses) Reclassified From OCI into Income
	Three Months Ended March 31,						Three Months Ended March 31,				Three Months Ended March 31,
	2012			2011			2012		2011		2012		2011
Derivatives designated as hedges:
Interest rate contracts	$	—		$	—		$	12	$	15	$	—	$	—
Total	$	—		$	—		$	12	$	15	$	—	$	—
Non-designated derivatives:
Forward currency exchange contracts(a)	$	(2,910	)	$	(1,456	)	$	—	$	—	$	—	$	—
Total	$	(2,910	)	$	(1,456	)	$	—	$	—	$	—	$	—

^(a) The losses on these derivatives substantially offset the gains on the hedged portion of foreign intercompany balances.

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