Foreign Currency Exchange Contracts and Hedging

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Exchange Contracts and Hedging

Foreign Currency Exchange Contracts and Hedging

The Company had foreign currency forward contracts designated as cash-flow hedges with notional amounts totaling approximately $64,000 and $77,000 as of March 31, 2014 and December 31, 2013, respectively. These contracts were held by four counterparties and, as of March 31, 2014, were expected to mature over the next 9 months.

The nonperformance risk of the Company and the counterparties did not have a material impact on the fair value of the derivatives.  During the three months ended March 31, 2014, the ineffective portion relating to these hedges was immaterial and the hedges remained effective as of March 31, 2014.  The effective portion of the gain or loss on the derivative is reported in other comprehensive income (loss) (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings.  As of March 31, 2014, the total amount in accumulated other comprehensive loss (see note 3) was expected to be reclassified into income within the next 12 months.

The following table summarizes the effect of foreign exchange contracts designated as cash flow hedging relationships on the condensed consolidated financial statements:

For the Three Months Ended   March 31,	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)			Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	Reclassified from AOCI into Income (Effective Portion)			Location of Amount Excluded from Effectiveness Testing	Gain (Loss) from Amount Excluded from Effectiveness Testing
2014	$	(47	)	Net sales	$	(283	)	SG&A	$	(31	)
2013	$	2,491		Net sales	$	—		SG&A	$	(33	)

All of the Company’s derivatives were designated as hedging instruments as of March 31, 2014 and 2013.

Subsequent to March 31, 2014, the Company entered into a non-designated derivative contract, held by a fifth counterparty, with a notional amount totaling $10,000.