XML 43 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2013
Derivative Financial Instruments [Abstract]  
Derivative Financial Instruments
  6. Derivative Financial Instruments:

 

The Company enters into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. The Company had no cash flow hedges during the three month periods ended March 31, 2013 and 2012.

 

The following table presents gains and losses in derivatives not designated as hedges and the location of those gains and losses in the financial statements (in thousands):

 

Derivatives not designated
as hedging instruments		   Location of gain (loss) recognized
in Income on Derivative		   March 31, 2013     March 31, 2012  
                 
Interest rate swaps   Interest income   $ -     $ 30  
Foreign exchange contracts   Gain (loss) on foreign currency   $ (25 )   $ 114  

 

All derivative instruments are reported as either assets or liabilities on the balance sheet measured at fair value. The valuation of foreign currency forward exchange contracts not accounted for using hedge accounting as of March 31, 2013 resulted in a liability and is included in accrued expenses and at December 31, 2012 such valuation resulted in an asset and is included in other current assets on the accompanying balance sheets. Generally, increases or decreases in the fair value of derivative instruments will be recognized as gains or losses in earnings in the period of change. If the derivative instrument is designated and qualifies as a cash flow hedge, the changes in fair value of the derivative instrument will be recorded as a separate component of shareholders' equity.

 

At March 31, 2013, we had foreign currency contracts in the form of forward exchange contracts in the amount of approximately U.S. $61 million and GB pounds £5.2 million which all have maturities of less than one year.