Foreign Currency Exchange Contracts and Hedging

9 Months Ended

Sep. 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 $53,000 and $66,000 as of September30, 2012 and December31, 2011, respectively, held by two counterparties. At September30, 2012, the outstanding contracts were expected to mature over the next six 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 and nine months ended September30, 2012, the ineffective portion relating to these hedges was immaterial and the hedges remained effective as of September30, 2012. The effective portion of the gain or loss on the derivative is reported in other comprehensive (loss) income (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As of September30, 2012, the total amount in AOCI (see note 4) was expected to be reclassified into income within the next six months.

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

					AmountofGain(Loss)
	AmountofGain(Loss)			LocationofGain(Loss)	Reclassifiedfrom
FortheNine	RecognizedinOCI			Reclassifiedfrom	AOCIinto			LocationofAmount	Gain(Loss)from
MonthsEnded	onDerivative			AOCIintoIncome	Income(Effective			Excludedfrom	AmountExcludedfrom
September30,	(EffectivePortion)			(EffectivePortion)	Portion)			EffectivenessTesting	EffectivenessTesting
2012	$	(1,707	)	Net Sales	$	1,141		SG&A	$	23
2011	$	(1,985	)	Net Sales	$	(220	)	SG&A	$	(94	)

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

FortheNine	LocationofGain(Loss)	AmountofGain(Loss)
MonthsEnded	RecognizedinIncome(Loss)on	RecognizedinIncome(Loss)on
September30,	Derivatives	Derivatives
2012	SG&A	$	(272	)
2011	SG&A	$	(591	)