Foreign Currency Exchange Contracts and Hedging
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3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2013
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Foreign Currency Exchange Contracts and Hedging | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Exchange Contracts and Hedging | (6) Foreign Currency Exchange Contracts and Hedging
The Company had foreign currency forward contracts designated as cash-flow hedges with notional amounts totaling approximately $63,000 as of March 31, 2013, held by two counterparties. At December 31, 2012, the Company had non-designated derivative contracts with notional amounts totaling approximately $19,000, which were comprised of offsetting contracts with the same counterparty and expired in March 2013. At March 31, 2013, the outstanding contracts were expected to mature over the next nine 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, 2013, the ineffective portion relating to these hedges was immaterial and the hedges remained effective as of March 31, 2013. 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 March 31, 2013, the total amount in accumulated other comprehensive loss (see note 3) was expected to be reclassified into income within the next twelve months.
The following table summarizes the effect of foreign exchange contracts designated as cash flow hedging relationships on the condensed consolidated financial statements:
All of the Company’s derivatives were designated as hedging instruments as of March 31, 2013. |