Financial Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2014

The following table summarizes the fair values of derivative instruments for the period indicated and the line items in the accompanying condensed consolidated balance sheets where the instruments are recorded:


In thousands	September 30 2014		December 31 2013		September 30 2014		December 31 2013
Balance sheet caption	Prepaid Expenses and Other Current Assets				Other Current Liabilities
*Designated as hedging:*
Forward foreign currency exchange contracts	$	2,106	$	—	$	166	$	1,163
*Not designated as hedging:*
Forward foreign currency exchange contracts	$	10	$	36	$	73	$	46

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 condensed consolidated statements of income where the results are recorded:


	Three months ended September 30						Nine months ended September 30
In thousands	2014			2013			2014			2013
*Designated as hedging:*
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	(137	)	$	(384	)	$	(1,227	)	$	(641	)
Ineffective portion – other – net		81			49			181			74
*Not designated as hedging*:
Forward foreign currency exchange contracts:
Other – net	$	595		$	(348	)	$	1,792		$	(794	)

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	2014			2013
Balance at January 1,	$	(1,296	)	$	(599	)
Deferred (losses) gains on cash flow hedges		2,223			(778	)
Reclassified to earnings		1,227			641

Balance at September 30,	$	2,154		$	(736	)

Designated as Hedging [Member]

Outstanding Derivatives Used to Hedge Foreign Exchange Risks

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	September 30 2014		December 31 2013
Derivative	Buy Notional
Sell / Buy
Euro / U.S. dollar		22,631		27,105
U.S. dollar / Canadian dollar		8,124		13,077
Euro / Philippine peso		439,675		—
British Pound / Philippine peso		243,310		—
Euro / British Pound		3,358		—

Not Designated as Hedging [Member]

Outstanding Derivatives Used to Hedge Foreign Exchange Risks

The following sets forth derivatives used to mitigate the impact changes in currency exchange rates have on balance sheet monetary assets and liabilities:


In thousands	September 30 2014			December 31 2013
Derivative	Sell (Buy) Notional
Sell / Buy
U.S. dollar / British Pound		11,000			6,000
Euro / British Pound		(9,000	)		(8,000	)
Euro / British Pound		2,000			5,000
Canadian dollar / U.S. dollar		2,000			2,000
U.S. dollar / Euro		—			2,000
Euro / U.S. dollar		—			9,000