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Derivative Instruments
 9 Months Ended
Sep. 30, 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 and Australia. 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'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 September 30, 2013 and 2012 and December 31, 2012 (dollars in thousands):

 

Assets As of September 30, 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 $ 97,290 $ - $ (790) $ (790)
             
Assets As of September 30, 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 $ 93,642 $ - $ (307) $ (307)
             
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)

(a) As of September 30, 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.

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

The following table presents information on the effect of derivative instruments on the consolidated results of operations and AOCI for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands):

 

                   
  Gains (Losses) Recognized in Income Gains Recognized in AOCI Gains (Losses) Reclassified From AOCI into Income
  Three Months Ended Three Months Ended Three Months Ended
  September 30, September 30, September 30,
  2013 2012 2013 2012 2013 2012
Non-designated derivatives:                  
Forward currency exchange contracts(a) $ (5,432) $ (4,097) $ - $ - $ - $ -
Total  $ (5,432) $ (4,097) $ - $ - $ - $ -

                   
  Gains (Losses) Recognized in Income Gains Recognized in AOCI Gains (Losses) Reclassified From AOCI into Income
  Nine Months Ended Nine Months Ended Nine Months Ended
  September 30, September 30, September 30,
  2013 2012 2013 2012 2013 2012
Derivatives designated as hedges:                  
Interest rate contracts $ - $ - $ - $ 12 $ - $ -
Total $ - $ - $ - $ 12 $ - $ -
                   
Non-designated derivatives:                  
Forward currency exchange contracts(a) $ (181) $ (5,118) $ - $ - $ - $ -
Total  $ (181) $ (5,118) $ - $ - $ - $ -

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