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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2013
Derivative Financial Instruments | Note 14 — Derivative Financial Instruments We are exposed to market risk from changes in foreign currency exchange rates and short term interest rates. Market risks for changes in interest rates relate primarily to our debt obligations under our Bank of America credit facilities. Foreign currency exchange risks are attributable to sales to foreign customers and purchases from foreign suppliers not denominated in the location’s functional currency, foreign plant operations, intercompany indebtedness and include exposures to the European Euro, Mexican Peso, Canadian Dollar, Hungarian Forint, Ukraine Hryvnia and Korean Won. The Company regularly enters into derivative contracts with the objective of managing its financial and operational exposure arising from this risk by offsetting gains and losses on the underlying exposures with gains and losses on the financial instruments used to hedge them. We do not enter into derivative financial instruments for speculative or trading purposes. Our hedging relationships are formally documented at the inception of the hedge, and hedges must be highly effective in offsetting changes to future cash flows on hedged transactions both at the inception of a hedge and on an ongoing basis to be designated for hedge accounting treatment. We record the ineffective portion of hedging instruments, if any, to other income (expense) in the consolidated condensed statements of income. Though we continuously monitor the hedging program, derivative positions and hedging strategies, foreign currency forward exchange agreements have not always been designated as hedging instruments for accounting purposes. In March 2008, W.E.T., entered into a 10 year currency related interest rate swap (“CRS”) having a notional value of €10,000, or $13,779 as of December 31, 2013, in order to offset the interest rate risk associated with a debt financing which was repaid prior our acquisition of W.E.T. Under this agreement W.E.T. receives interest equal to the then six month Euro Interbank Offered Rate (“EURIBOR”), 0.39% at December 31, 2013, plus 1.40% and pays interest equal to the six month EURIBOR when the exchange rate between the European Euro (“EUR”) and the Swiss Franc (“CHF”), which was 1.23 at December 31, 2013, equals or exceeds 1.46 EUR to the CHF or pays interest equal to the six month EURIBOR plus a premium when this exchange rate is less than 1.46. The premium is calculated as [(1.46 – current EUR/CHF rate)/current EUR/CHF rate] x 100. In 2011, W.E.T. brought a lawsuit against UniCredit Bank AG (“UniCredit”), a past financial advisor, stemming from the recommendation to invest in the aforementioned CRS. On March 25, 2013, the Munich District Court in Munich, Germany ruled in favor of W.E.T., asserting that UniCredit violated its duty to properly advise W.E.T. with respect to the initial negative market value for the CRS and UniCredit’s inherent conflict of interest in recommending that W.E.T. invest in CRS. The Munich District Court ruled that UniCredit must (1) pay €144 to W.E.T. and (2) bear the costs of all future obligations under the CRS, which were €8,584 or $11,828 as of December 31, 2013, plus additional accrued liabilities for past due payments under the CRS of approximately €5,380, or $7,413 as of December 31, 2013. UniCredit has appealed the decision and an extension has been granted. As a result, the Company cannot be certain that any portion of the award by the Munich District Court will be realized by W.E.T. See the derivatives table below for information about our future obligations under the CRS as of December 31, 2013 and 2012, respectively. The Company has entered into offsetting derivative contracts designed to cancel out the market risk of payments due under the CRS through the end of the CRS agreement, in 2018. In July 2011, the Company entered into two interest rate swap contracts with separate financial institutions and an interest rate cap agreement in order to hedge the exposure to variable market interest rates on the Company’s Bank of America credit facilities. The interest rate swap contracts qualified for and are designated as cash flow hedges. Swap gains and losses are reported in accumulated other comprehensive income and will be reclassified to earnings once the Company’s Bank of America credit facilities are repaid. Cap gains and losses are reported in foreign currency gains and losses on the consolidated statement of income. Information on the interest rate swap contracts is as follows: Information on the interest rate swap contracts is as follows:
Contract Type |  | Contract Term |  |  | Notional Value |  |  | Hedged Instruments |  |  | Fixed Rate |  |  | Variable Rate |  |  | Rate Cap |
Swap |  |  | June 30, 2014 |  |  | $ | 8,000 |  |  |  | US Term Note |  |  |  | 1.27 | % |  |  | 3 month LIBOR |  |  |  | — |
Swap |  |  | June 30, 2014 |  |  | $ | 8,000 |  |  |  | US Term Note |  |  |  | 1.27 | % |  |  | 3 month LIBOR |  |  |  | — |
Cap |  |  | March 31, 2016 |  |  | € | 14,250 |  |  |  | W.E.T. Term Note |  |  |  | — |  |  |  | 3 month EURIBOR |  |  |  | 2.75 |
Note 14 — Derivative Financial Instruments (Continued) Information related to the recurring fair value measurement of derivative instruments in our consolidated balance sheet as of December 31, 2013 is as follows:
|  |  |  |  |  | Asset Derivatives |  |  | Liability Derivatives |  |  | Net Asset/ (Liabilities) |
|  | Hedge Designation |  | Fair Value Hierarchy |  | Balance Sheet Location |  |  | Fair Value |  |  | Balance Sheet Location |  | Fair Value |  |
CRS |  | Not a hedge |  | Level 2 |  |  |  |  |  |  |  |  |  | Current liabilities |  | $ | (2,471 | ) |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Non current liabilities |  |  | (9,358 | ) |  |  |  |
Total CRS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (11,829 | ) |  | $ | (11,829 | )
Foreign currency derivatives |  | Not a hedge |  | Level 2 |  |  | Current assets |  |  | $ | 1 |  |  |  |  |  |  |  |  | $ | 1 |
Foreign currency derivatives |  | Not a hedge |  | Level 2 |  |  | Current assets |  |  | $ | 66 |  |  |  |  |  |  |  |  | $ | 66 |
Non current assets |  |  |  |  |  |  |  |  |  |  | 1,969 |  |  |  |  |  |  |  |  | $ | 1,969 |
Total foreign currency derivatives |  |  |  |  |  |  |  |  |  | $ | 2,036 |  |  |  |  |  |  |  |  | $ | 2,036 |
Interest rate swap derivatives |  | Cash flow hedge |  | Level 2 |  |  |  |  |  |  |  |  |  | Current liabilities |  | $ | (81 | ) |  | $ | (81 | )
Information related to the recurring fair value measurement of derivative instruments in our consolidated balance sheet as of December 31, 2012 is as follows:
|  |  |  |  |  | Asset Derivatives |  |  | Liability Derivatives |  |  | Net Asset/ (Liabilities) |
|  | Hedge Designation |  | Fair Value Hierarchy |  | Balance Sheet Location |  |  | Fair Value |  |  | Balance Sheet Location |  | Fair Value |  |
CRS |  | Not a hedge |  | Level 2 |  |  |  |  |  |  |  |  |  | Current liabilities |  | $ | (2,631 | ) |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Non current liabilities |  |  | (13,245 | ) |  |  |  |
Total CRS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (15,876 | ) |  | $ | (15,876 | )
Foreign currency derivatives |  | Not a hedge |  | Level 2 |  |  | Current assets |  |  | $ | 3 |  |  | Current liabilities |  | $ | (471 | ) |  | $ | (468 | )
Foreign currency derivatives |  | Not a hedge |  | Level 2 |  |  | Current assets |  |  | $ | 157 |  |  |  |  |  |  |  |  | $ | 157 |
Non current assets |  |  |  |  |  |  |  |  |  |  | 4,141 |  |  |  |  |  |  |  |  | $ | 4,141 |
Total foreign currency derivatives |  |  |  |  |  |  |  |  |  | $ | 4,301 |  |  |  |  | $ | (471 | ) |  | $ | 3,830 |
Interest rate swap derivatives |  | Cash flow hedge |  | Level 2 |  |  |  |  |  |  |  |  |  | Current liabilities |  | $ | (224 | ) |  | $ | (224 | )
Information related to the effect of derivative instruments on our consolidated statements of income is as follows:
|  | Location |  | Year Ended December 31, 2013 |  |  | Year Ended December 31, 2012 |
Foreign currency derivatives |  | Revaluation of derivatives |  | $ | (1,329 | ) |  |  | (3,926 | )
|  | Foreign currency gain (loss) |  |  | (761 | ) |  |  | 1,875 |
Total foreign currency derivatives |  |  |  | $ | (2,090 | ) |  | $ | (2,051 | )
CRS |  | Revaluation of derivatives |  | $ | 2,335 |  |  | $ | 1,491 |
Commodity derivatives |  | Revaluation of derivatives |  | $ | — |  |  | $ | 143 |
Interest Rate Swap |  | Interest Expense |  | $ | (2 | ) |  | $ | (57 | )
|  | Other Comprehensive Income |  |  | 143 |  |  |  | (18 | )
We did not incur any hedge ineffectiveness during the twelve months ended December 31, 2013 and 2012.

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- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: 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 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41678-113959 Reference 3: 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=7476318&loc=d3e41620-113959 Reference 4: 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=7476318&loc=SL5579245-113959 Reference 5: 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=7476318&loc=SL5580258-113959 Reference 6: 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=7476318&loc=SL5579240-113959 Reference 7: 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=7476318&loc=d3e41641-113959 Reference 8: 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=7476318&loc=d3e41638-113959 Reference 9: 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=7476318&loc=SL5624171-113959 Reference 10: 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=7476318&loc=SL5624163-113959 Reference 11: 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)(2)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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