Financial Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2013

Outstanding Derivatives Used to Hedge Foreign Exchange Risk


In thousands	2013		2012
Derivative	Sell (Buy) Notional
Sell / Buy
Euro / U.S. dollar	9,000		13,000
Euro / British Pound	(8,000	)	–
Euro / British Pound	5,000		4,000
Canadian dollar / U.S. dollar	2,000		2,000
U.S. dollar / Euro	2,000		2,000
U.S. dollar / British Pound	6,000		–

Fair Values of Derivative Instruments

The following table summarizes the fair values of derivative instruments as of December 31 for the year indicated and the line items in the accompanying consolidated balance sheet where the instruments are recorded:


In thousands		2013	2012	2013		2012
Balance sheet caption		Prepaid Expenses and Other Current Assets		Other Current Liabilities
*Designated as hedging:*
Forward foreign currency exchange contracts	$	–	$107	$1,163		$751
*Not designated as hedging:*
Forward foreign currency exchange contracts	$	36	$159	$46	$	16

Income or Loss from Derivative Instruments Recognized in Results of Operations

The following table summarizes the amount of income or loss from derivative instruments recognized in our results of operations for the periods indicated and the line items in the accompanying consolidated statements of income where the results are recorded:


In thousands		2013			2012			2011
*Designated as hedging:*
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	(945	)	$	2,183		$	174
Ineffective portion – other – net		38			311			165
*Not designated as hedging*:
Forward foreign currency exchange contracts:
Other – net	$	(455	)	$	(696	)	$	(686	)

Fair Value Amounts Recorded as Component of Accumulated Other Comprehensive Income

A rollforward of fair value amounts recorded as a component of accumulated other comprehensive income is as follows:


In thousands		2013			2012
Balance at January 1,	$	(599	)	$	1,649
Deferred losses on cash flow hedges		(1,642	)		(65	)
Reclassified to earnings		945			(2,183	)
Balance at December 31,	$	(1,296	)	$	(599	)

Designated as Hedging [Member]

Outstanding Derivatives Used to Hedge Foreign Exchange Risk

We had the following outstanding derivatives that were used to hedge foreign exchange risks associated with forecasted transactions and designated as hedging instruments:


In thousands	2013	2012
Derivative	Buy Notional
Sell / Buy
Euro / U.S. dollar	27,105	27,003
U.S. dollar / Canadian dollar	13,077	12,369