Derivative Financial Instruments

12 Months Ended

Dec. 31, 2013

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

(6) Derivative Financial Instruments

The Company enters into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. The Company did not enter into any cash flow hedges during the three-year period ended December 31, 2013.

The following table presents gains and losses in derivatives not designated as hedges and the location of those gains and losses in the financial statements (in thousands):

Derivatives not Designated as Hedging Instruments	Location of Gain (Loss) recognized in Income on Derivative	December 31, 2013		December 31, 2012
Interest rate swaps	Interest expense	$	-	$	68
Foreign exchange contracts	Gain (loss) on foreign currency	$	11	$	153

All derivative instruments are reported as either assets or liabilities on the balance sheet measured at fair value. The valuation of foreign currency forward exchange contracts not accounted for using hedge accounting in 2013 and 2012 resulted in an asset and is included in other current assets on the accompanying balance sheets. Generally, increases or decreases in the fair value of derivative instruments will be recognized as gains or losses in earnings in the period of change. If the derivative instrument is designated and qualifies as a cash flow hedge, the changes in fair value of the derivative instrument will be recorded as a separate component of shareholders' equity.

At December 31, 2013, the Company had foreign currency contracts in the form of forward exchange contracts in the amount of approximately U.S. $8.3 million and GB £2.1 million which all have maturities of less than one year.