Foreign Currency Exchange Contracts and Hedging

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Exchange Contracts and Hedging

Foreign Currency Exchange Contracts and Hedging

As of September 30, 2013, the Company had foreign currency forward contracts designated as cash-flow hedges with notional amounts totaling approximately $38,000 , held by two counterparties and had non-designated derivative contracts with notional amounts totaling approximately $22,000, held by one counterparty. 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 September 30, 2013, the outstanding contracts were expected to mature over the next three 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 September 30, 2013, the ineffective portion relating to these hedges was immaterial and the hedges remained effective as of September 30, 2013.  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 September 30, 2013, the total amount in accumulated other comprehensive loss (see note 3) 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:

For the Nine Months Ended September 30,	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
2013	$	(690	)	Net sales	$	597	SG&A	$	(12	)
2012	$	(1,707	)	Net sales	$	1,141	SG&A	$	23

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

For the Nine Months Ended September 30,	Location of Gain (Loss) Recognized in Income (Loss) on Derivatives	Amount of Gain (Loss) Recognized in Income (Loss) on Derivatives
2013	SG&A	$	(32	)
2012	SG&A	$	(272	)