Derivative Instruments

3 Months Ended

Mar. 31, 2013

Derivative Instruments [Abstract]

Derivative Instruments

13. 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.

The Company uses forward currency exchange contracts to hedge foreign currency risk in the United Kingdom andAustralia.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 transactiongain (loss)” in the Company's consolidated statements of income.

The Company's derivative instruments are presented in its financial statements on a net basis. The following table presents information related to the Company's derivative instruments as of March 31, 2013 and 2012 and December 31, 2012were as follows (dollars in thousands):

Assets	As of March 31, 2013
Non-designated derivatives:		Notional Amount		Gross Amounts of Recognized Assets	Gross Amounts Offset in the Consolidated Balance Sheet(a)		Net Amounts of Assets Presented in the Consolidated Balance Sheet(b)
Forward currency exchange contracts	$	86,456	$	-	$	(407)	$	(407)
Assets	As of March 31, 2012
Non-designated derivatives:		Notional Amount		Gross Amounts of Recognized Assets	Gross Amounts Offset in the Consolidated Balance Sheet(a)		Net Amounts of Assets Presented in the Consolidated Balance Sheet(b)
Forward currency exchange contracts	$	76,671	$	-	$	(396)	$	(396)
Assets	As of December 31, 2012
Non-designated derivatives:		Notional Amount		Gross Amounts of Recognized Assets	Gross Amounts Offset in the Consolidated Balance Sheet(a)		Net Amounts of Assets Presented in the Consolidated Balance Sheet(b)
Forward currency exchange contracts	$	93,813	$	-	$	(406)	$	(406)

Represents the fair value of forward currency exchange contracts, which is recorded in “Prepaid expenses and other assets” in the consolidated balance sheets.

(a)

(b)

As of March 31, 2013, the Company had no gross amounts of recognized derivative instruments that the Company makes an accounting policy election not to offset. In addition, there is no financial collateral related to the Company's derivatives. The Company has no liabilities that are subject to an enforceable master netting agreement or similar arrangement.

The following table presents information on the effect of derivative instruments on the consolidated results of operations and the Other Comprehensive Income (“OCI”) for the three months endedMarch 31, 2013 and 2012 (dollars in thousands):

		Gains (Losses) Recognized in Income				Gains Recognized in OCI				Gains (Losses) Reclassified From OCI into Income
		Three Months Ended				Three Months Ended				Three Months Ended
		March 31,				March 31,				March 31,
		2013		2012		2013		2012		2013		2012
Derivatives designated as hedges:
Interest rate contracts	$	-	$	-	$	-	$	12	$	-	$	-
Total	$	-	$	-	$	-	$	12	$	-	$	-
Non-designated derivatives:
Forward currency exchange contracts(a)	$	5,317	$	(2,910)	$	-	$	-	$	-	$	-
Total	$	5,317	$	(2,910)	$	-	$	-	$	-	$	-

(a)

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