Hedging Activities

9 Months Ended

Sep. 30, 2011

General Discussion Of Derivative Instruments And Hedging Activities [Abstract]

Derivative Instruments And Hedging Activities Disclosure [Text Block]

Note 5 – Hedging Activities

The Company is exposed to the impact of changes in interest rates, foreign currency fluctuations, changes in commodity prices and credit risk. The Company does not use derivative instruments to mitigate the risks associated with foreign currency fluctuations, changes in commodity prices or credit risk. Quaker uses interest rate swaps to mitigate the impact of changes in interest rates. The swaps convert a portion of the Company's variable interest rate debt to fixed interest rate debt and are designated as cash flow hedges and reported on the balance sheet at fair value. The effective portions of the hedges are reported in Other Comprehensive Income (“OCI”) until reclassified to earnings during the same period the hedged item affects earnings. The Company has no derivatives designated as fair value hedges and only has derivatives designated as hedging instruments under the FASB's guidance. The notional amount of the Company's interest rate swaps was $15,000 as of September 30, 2011 and December 31, 2010.

Information about the Company's interest rate derivatives is as follows (in thousands of dollars):

			Fair Value
			September 30,		December 31,
		Balance Sheet Location	2011		2010
Derivatives designated as cash flow hedges:
	Interest rate swaps	Other current liabilities	$	586	$	0
	Interest rate swaps	Other non-current liabilities		0		1,026
			$	586	$	1,026

Cash Flow Hedges
Interest Rate Swaps
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Amount of Gain Recognized in Accumulated OCI on Derivative
(Effective Portion)		$	112	$	191	$	286	$	487
Amount and Location of Loss Reclassified from Accumulated OCI into
Income (Effective Portion)	Interest Expense	$	(168)	$	(444)	$	(496)	$	(1,352)