Derivatives and Other Financial Instruments

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Other Financial Instruments

14. Derivatives and Other Financial Instruments

The Company has exposure to certain risks relating to its ongoing business operations, including financial, market, political and economic risks.  The following discussion provides information regarding our exposure to the risks of changing foreign currency exchange rates.  The Company has not entered into these contracts for trading or speculative purposes in the past, nor do we currently anticipate entering into such contracts for trading or speculative purposes in the future.  The foreign exchange contracts are used to mitigate uncertainty and volatility, and to cover underlying exposures.

Foreign Currency Forward Contracts

We manage the risk of changes in foreign currency exchange rates, primarily at our Malaysian operation, through the use of foreign currency contracts.  Foreign exchange contracts are used to protect the Company from the risk that the eventual cash flows resulting from transactions in foreign currencies, including sales and purchases transacted in a currency other than the functional currency, will be adversely affected by changes in exchange rates.  We report the fair value of the derivatives on our consolidated balance sheet and changes in the fair value are recognized in earnings in the period of the change.

The following table summarizes the gross fair market value of all derivative instruments, which are not designated as hedging instruments and their location in our Consolidated Balance Sheet:

(In thousands)
Asset Derivatives
			December 31,		December 31,
	Derivative Instrument	Location	2012		2011
	Foreign Currency Exchange Contracts	Other Current Assets	$	-	$	16
			$	-	$	16
		Liability Derivatives
			December 31,		December 31,
Derivative Instrument		Location	2012		2011
	Foreign Currency Exchange Contracts	Accrued Expenses	$	1	$	-
			$	1	$	-

The following table summarizes the impact of the Company’s derivatives on the consolidated financial statements of income for the twelve month periods ended December 31, 2012 and 2011:

(In thousands)			Amount of Gain (Loss) Recognized in Operations
		Location of Gain		Twelve Months Ended
Derivative		(Loss) on Derivative		December 31,
Instrument		Instrument			2012		2011
		Other Expense:  (Loss)
	Foreign Currency	gain on foreign currency
	Exchange Contracts	exchange rate			$	74	$	(69)
					$	74	$	(69)