XML 25 R9.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Financial Instruments | 9 Months Ended
--- | ---
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS As more fully described below, the Company enters into certain interest rate swap agreements in order to manage its exposure to changes in interest rates. The amount of the Company’s fixed obligation interest payments may change based upon the expiration dates of its interest rate swap agreements and the level and composition of its debt. The Company also enters into certain foreign currency forward contracts to limit the Company’s exposure to currency fluctuations on the respective hedged items. The Company does not use derivative financial instruments for trading purposes. For additional disclosures on the fair value of financial instruments, also see Note 4 to the interim consolidated financial statements. Cash Flow Hedges The Company has an interest rate swap agreement, designated as a cash flow hedge. The agreement changes the floating rate LIBOR-based interest payments associated with $100 million in borrowings under the Company’s credit agreement to a fixed obligation of 3.24% beginning October 2010 ("Interest rate swaps - October 2010"). In June 2013, the Company entered into a forward starting interest rate swap agreement, designated as a cash flow hedge. The agreement which will change the floating rate LIBOR-based interest payments associated with $50 million in forecasted borrowings under the Company's credit agreement to a fixed obligation of 2.52% beginning in October 2015 ("Interest rate swaps - October 2015"). In July 2012, the Company began entering into foreign currency forward contracts, designated as cash flow hedges, to hedge certain forecasted intercompany sales denominated in euro with its Swiss-based businesses. The notional amount of foreign currency forward contracts outstanding at September 30, 2014 and December 31, 2013 was $83.6 million and $78.2 million, respectively. Through September 30, 2014 no hedge ineffectiveness has occurred in relation to these cash flow hedges. The fair value of the cash flow hedges as of September 30, 2014 and December 31, 2013 are recorded gross in the consolidated balance sheet as follows:
|  |  |  | Fair Value at
|  | Balance Sheet Location |  | September 30, 2014 |  | December 31, 2013
Derivative designated as cash flow hedging instruments: |  |  |  |  |  |
Interest rate swaps - October 2010 |  | Non-current (liabilities)/assets |  | $ | (3,218 | ) |  | $ | (5,312 | )
Interest rate swaps - October 2015 |  | Non-current (liabilities)/assets |  | (314 | ) |  | 1,269 |
Foreign currency forward contracts: |  | Other current assets |  | 607 |  |  | 268 |
|  | Accrued and other liabilities |  | — |  |  | (103 | )
The effects of the derivative instruments designated as cash flow hedges on the consolidated statements of operations for the three months ended September 30, 2014 and 2013 are as follows:
|  | Before Tax |  | After Tax
|  | 2014 |  | 2013 |  | 2014 |  | 2013
Recognized in other comprehensive income (loss): |  |  |  |  |  |  |  |
Interest rate swaps - October 2010 |  | $ | — |  |  | $ | (281 | ) |  | $ | — |  |  | $ | (173 | )
Interest rate swaps - October 2015 |  | — |  |  | (198 | ) |  | — |  |  | (122 | )
Foreign currency forward contracts |  | 493 |  |  | (229 | ) |  | 392 |  |  | (182 | )
|  | Location of Derivative Gain (Loss) in Earnings |  | Before Tax |  | After Tax
|  |  | 2014 |  | 2013 |  | 2014 |  | 2013
Effective portion of gain (loss) reclassified into earnings: |  |  |  |  |  |  |  |  |  |
Interest rate swaps - October 2010 |  | Interest expense |  | $ | (787 | ) |  | $ | (777 | ) |  | $ | (484 | ) |  | $ | (478 | )
Foreign currency forward contracts |  | Cost of sales |  | 247 |  |  | (486 | ) |  | 197 |  |  | (386 | )
The effects of the derivative instruments designated as cash flow hedges on the consolidated statements of operations for the nine months ended September 30, 2014 and 2013 are as follows:
|  | Before Tax |  | After Tax
|  | 2014 |  | 2013 |  | 2014 |  | 2013
Recognized in other comprehensive income (loss): |  |  |  |  |  |  |  |
Interest rate swaps - October 2010 |  | $ | (239 | ) |  | $ | (123 | ) |  | $ | (147 | ) |  | $ | (76 | )
Interest rate swaps - October 2015 |  | (1,582 | ) |  | 717 |  |  | (973 | ) |  | 441 |
Foreign currency forward contracts |  | 887 |  |  | (1,579 | ) |  | 705 |  |  | (1,255 | )
|  | Location of Derivative Gain (Loss) in Earnings |  | Before Tax |  | After Tax
|  |  | 2014 |  | 2013 |  | 2014 |  | 2013
Effective portion of gain (loss) reclassified into earnings: |  |  |  |  |  |  |  |  |  |
Interest rate swaps - October 2010 |  | Interest expense |  | $ | (2,333 | ) |  | $ | (2,299 | ) |  | $ | (1,435 | ) |  | $ | (1,414 | )
Foreign currency forward contracts |  | Cost of sales |  | 453 |  |  | (1,517 | ) |  | 360 |  |  | (1,206 | )
A derivative loss of $3.0 million, $1.9 million after tax, based upon interest rates and a derivative gain of $0.6 million, $0.5 million after tax, based upon foreign currency rates at September 30, 2014, are expected to be reclassified from other comprehensive income (loss) to earnings in the next twelve months. Other Derivatives The Company enters into foreign currency forward contracts in order to economically hedge short-term intercompany balances largely denominated in Swiss franc and other major European currencies with its foreign businesses. In accordance with U.S. GAAP, these contracts are considered “derivatives not designated as hedging instruments.” Gains or losses on these instruments are reported in current earnings. At September 30, 2014 and December 31, 2013, these contracts had a notional value of $210.4 million and $180.3 million, respectively. The fair value of the foreign currency forward contracts as of September 30, 2014 and December 31, 2013 are as follows:
|  | Fair Value at
|  | September 30, 2014 |  | December 31, 2013
Balance sheet location: |  |  |  |
Other current assets |  | $ | 690 |  |  | $ | 719 |
Other current liabilities |  | (1,006 | ) |  | (355 | )
The effects of the foreign currency forward contracts on the consolidated statements of operations for the three and nine months ended September 30, 2014 and 2013 are as follows:
|  | 2014 |  | 2013
Gain (loss) recognized in other charges (income), net |  |  |  |
Three months ended |  | $ | (2,048 | ) |  | $ | 1,418 |
Nine months ended |  | (2,983 | ) |  | 727 |

X
- Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5618551-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708775-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624181-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624258-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708773-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624177-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41620-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579245-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5580258-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579240-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41641-113959 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41638-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration