Financial Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2014

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 sheets where the instruments are recorded:


	December 31				December 31
In thousands		2014		2013		2014		2013
Balance sheet caption		Prepaid Expenses and Other Current Assets				Other Current Liabilities
*Designated as hedging:*
Forward foreign currency exchange contracts	$	3,106	$	–		$394	$	1,163
*Not designated as hedging:*
Forward foreign currency exchange contracts	$	70	$	36		$161	$	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 consolidated statements of income where the results are recorded:


	Year ended December 31
In thousands		2014			2013			2012
*Designated as hedging:*
Forward foreign currency exchange contracts:
Effective portion – cost of products sold	$	(655	)	$	(945	)	$	2,183
Ineffective portion – other – net		184			38			311
*Not designated as hedging*:
Forward foreign currency exchange contracts:
Other – net	$	1,599		$	(455	)	$	(696	)

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		3,923			(1,642	)
Reclassified to earnings		655			945
Balance at December 31,	$	3,282		$	(1,296	)

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:


	December 31
In thousands		2014		2013
Derivative		Sell (Buy) Notional
Sell / Buy
Euro / U.S. dollar		(32,527	)	(27,105	)
U.S. dollar / Canadian dollar		(10,036	)	(13,077	)
Euro / Philippine peso		(523,313	)	–
British Pound / Philippine peso		(260,535	)	–
Euro / British Pound		4,592		–

Not Designated as Hedging [Member]

Outstanding Derivatives Used to Hedge Foreign Exchange Risks


	December 31
In thousands		2014		2013
Derivative		Sell (Buy) Notional
Sell / Buy
U.S. dollar / British Pound		9,000		6,000
Euro / British Pound		(3,000	)	(8,000	)
Euro / British Pound		2,000		5,000
Canadian dollar / U.S. dollar		–		2,000
U.S. dollar / Euro		4,000		2,000
Euro / U.S. dollar		–		9,000