Foreign Currency Exchange Contracts and Hedging

6 Months Ended

Jun. 30, 2012

Foreign Currency Exchange Contracts and Hedging

Foreign Currency Exchange Contracts and Hedging

(7)Foreign Currency Exchange Contracts and Hedging

The Company’s total hedging contracts had notional amounts totaling approximately $61,000 and $66,000 as of June 30, 2012 and December 31, 2011, respectively, held by one counterparty.  At June 30, 2012, the outstanding contracts were expected to mature over the next six months.

The nonperformance risk of the Company and the counterparty did not have a material impact on the fair value of the derivatives.  During the three and six months ended June 30, 2012, the ineffective portion relating to these hedges was immaterial and the hedges remained effective as of June 30, 2012.  The effective portion of the gain or loss on the derivative is reported in other comprehensive income (OCI) and reclassified into earnings (loss) in the same period or periods during which the hedged transaction affects earnings.  As of June 30, 2012, the total amount in AOCI (see note 4) was expected to be reclassified into income (loss) within the next nine months.

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

					Amount of Gain (Loss)
	Amount of Gain (Loss)			Location of Gain (Loss)	Reclassified from
For the Six	Recognized in OCI			Reclassified from	AOCI into		Location of Amount	Gain (Loss) from
Months Ended	on Derivative			AOCI into Income	Income (Effective		Excluded from	Amount Excluded from
June 30,	(Effective Portion)			(Effective Portion)	Portion)		Effectiveness Testing	Effectiveness Testing
2012	$	(111	)	Net Sales	$	382	SG&A	$	10
2011	$	(3,011	)	Net Sales	$	201	SG&A	$	(10	)

The following table summarizes the effect of foreign exchange contracts not designated as hedging instruments on the condensed consolidated financial statements:

For the Six	Location of Gain (Loss)	Amount of Gain (Loss)
Months Ended	Recognized in Income (Loss) on	Recognized in Income (Loss) on
June 30,	Derivatives	Derivatives
2012	SG&A	$	74
2011	SG&A	$	(670	)