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Derivative Instruments
 12 Months Ended
Dec. 31, 2013
Derivative Instruments [Abstract]  
Derivative Instruments

17. Derivative Instruments

 

The Company periodically uses derivative instruments to manage interest rate risk and foreign currency exchange rate risk.

As of December 31, 2013, there were no outstanding interest rate cap agreements. 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 (loss) gain” in the consolidated statements of income.

 

The fair values of the Company's derivative instruments as of December 31, 2013 and 2012 were as follows (dollars in thousands):

 

Assets As of December 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 $ 81,547 $ 27 $ (21) $ 6
             
Assets As of December 31, 2012
Non-designated derivatives: Notional Amount  Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet(a) Net Amounts of Liabilities Presented in the Consolidated Balance Sheet(b)
Forward currency exchange contracts $ 93,813 $ (406) $ - $ (406)

The following table presents information on the effect of derivative instruments on the consolidated results of operations and AOCI for the years ended December 31, 2013 and 2012 (dollars in thousands):

 

             
  Gains (Losses) Recognized in Income Gains (Losses) Recognized in AOCI Gains (Losses) Reclassified From AOCI into Income
  Year Ended December 31, Year Ended December 31, Year Ended December 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)$ (1,813)$ (4,794)$─$─$─$─
Total $ (1,813)$ (4,794)$─$─$─$─

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

 

(a)