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Derivative Financial Instruments | 6 Months Ended
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Jun. 30, 2014
Derivative Financial Instruments | Note 7 – 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 these risks 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. Note 7 – Derivative Financial Instruments – Continued The Company uses a market approach to value derivative instruments, analyzing observable benchmark rates at commonly quoted intervals for the instrument’s full term. For information about notional values and expected maturities of derivative instruments, see Part I, Item 3. “Quantitative and Qualitative Disclosures About Market Risk” included in this Report. Information related to the recurring fair value measurement of derivative instruments in our consolidated condensed balance sheet as of June 30, 2014 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 |  | $ | 2,630 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Non-current liabilities |  |  | 8,288 |  |  |  |  |
Total CRS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 10,918 |  |  | $ | (10,918 | )
Foreign currency derivatives |  | Cash flow hedge |  | Level 2 |  |  | Current assets |  |  | $ | 264 |  |  | Current liabilities |  | $ | 103 |  |  | $ | 161 |
Foreign currency derivatives |  | Not a hedge |  | Level 2 |  |  | Current assets |  |  | $ | 61 |  |  |  |  |  |  |  |  | $ | 61 |
|  |  |  |  |  |  | Non-current assets |  |  |  | 1,343 |  |  |  |  |  |  |  |  | $ | 1,343 |
Total foreign currency derivatives |  |  |  |  |  |  |  |  |  | $ | 1,668 |  |  |  |  | $ | 103 |  |  | $ | 1,565 |
Interest rate swap derivatives |  | Cash flow hedge |  | Level 2 |  |  |  |  |  |  |  |  |  | Current liabilities |  | $ | 43 |  |  | $ | (43 | )
Information relating to the effect of derivative instruments on our consolidated condensed income statements is as follows:
|  | Location |  | Three Months Ended June 30, 2014 |  |  | Six Months Ended June 30, 2014 |  |  | Three Months Ended June 30, 2013 |  |  | Six Months Ended June 30, 2013 |
Foreign currency derivatives |  | Revaluation of derivatives |  | $ | (421 | ) |  | (159 | ) |  |  | (301 | ) |  | (1,275 | )
|  | Cost of Sales |  |  | 83 |  |  | 30 |  |  |  | — |  |  | — |
|  | Selling, general and administrative |  |  | (20 | ) |  | (68 | ) |  |  | — |  |  | — |
|  | Other Comprehensive Income |  |  | 99 |  |  | 160 |  |  |  | — |  |  | — |
|  | Foreign currency gain (loss) |  |  | 5 |  |  | (448 | ) |  |  | (127 | ) |  | (418 | )
Total foreign currency derivatives |  |  |  | $ | (254 | ) |  | (485 | ) |  | $ | (428 | ) |  | (1,693 | )
CRS |  | Revaluation of derivatives |  | $ | 81 |  |  | (428 | ) |  | $ | 940 |  |  | 2,260 |
Interest Rate Swap |  | Interest Expense |  | $ | (1 | ) |  | (1 | ) |  | $ | 2 |  |  | 2 |
|  | Other Comprehensive Income |  |  | — |  |  | 39 |  |  |  | 36 |  |  | 75 |
We did not incur any hedge ineffectiveness during the six months ended June 30, 2014 and 2013.

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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 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41678-113959 Reference 2: 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 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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