FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2013

FINANCIAL INSTRUMENTS [Abstract]

Summary of available-for-sale securities

The following is a summary of available-for-sale securities as of December 31, 2012 (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
U.S. government obligations and agency securities	$	6,775	$	54	$	-	$	6,829
U.S. corporate debt		651		13		-		664
Foreign corporate debt and equity securities		1,837		36		-		1,873
Total available-for-sale securities	$	9,263	$	103	$	-	$	9,366

Notional values of entity's foreign currency forward contracts mature within 12 months

As of March 31, 2013 and December 31, 2012, the total notional values of the Company's derivative assets and liabilities were as follows (in thousands):

	March 31,		December 31,
	2013		2012
Euro	$	17,418	$	16,933
Japanese yen		6,192		10,542
British pound		4,419		4,278
Interest rate swap		27,519		27,519
Total	$	55,548	$	59,272

Entity's foreign currency derivatives measured at fair value

The following table shows the Company's derivative assets and liabilities measured at fair value as reflected on the accompanying Condensed Consolidated Balance Sheets as of March 31, 2013 and December 31, 2012 (in thousands):

	March 31,		December 31,		Balance Sheet
	2013		2012		Classification
Derivative assets:
Foreign exchange contracts	$	1,321	$	842	Other current assets
Derivative liabilities:
Foreign exchange contracts		172		752	Accrued liabilities
Interest rate swap		78		77	Accrued liabilities

Effect of entity's derivative instruments, net of tax, on Condensed Statements of Operations

The following table shows the effect, net of tax, of the Company's derivative instruments on the accompanying Condensed Consolidated Statements of Operations and OCI for the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended
	March 31,
	2013		2012
Derivatives in cash flow hedging relationships:
Net gain (loss) recognized in OCI, net of tax (1)	$	1,086	$	(516	)
Net gain (loss) reclassified from accumulated OCI into Revenue, net of tax (2)		825		518
Net gain (loss) reclassified from accumulated OCI into Interest income and other, net, net of tax (3)		158		-
Net gain (loss) recognized in Interest income and other, net, net of tax (4)		15		25
Derivatives not designated as hedging relationships:
Net gain (loss) recognized in Interest income and other, net, net of tax (5)		143		(148	)

(1) Net change in the fair value of the effective portion classified in OCI

(2) Effective portion classified as Revenue

(3) Ineffective portion classified as Interest income and other, net

(4) Amount excluded from effectiveness testing classified as Interest income and other, net

(5) Classified in Interest and other, net