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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2011
Derivative Financial Instruments [Abstract]  
Derivative Financial Instruments
Note 19 -        DERIVATIVE FINANCIAL INSTRUMENTS

 
A.
Derivative financial instruments are presented as other assets or other payables. For asset derivatives and liability derivatives, respectively, the fair value of the Company's outstanding derivative instruments as of December 31, 2011 and December 31, 2010 is summarized below:

Asset Derivatives (*)
    
Liability Derivatives (**)
  
   
December 31,
2011
    
December 31,
2010
    
December 31,
2011
    
December 31,
2010
  
Derivatives designated as hedging instruments
                        
    Foreign exchange contracts
   $ 9,908     $ 16,897     $ 23,914     $ 5,509  
    Cross-currency interest rate swaps
     8,877       20,377       -       -  
      18,785       37,274       23,914       5,509  
Derivatives not designated as hedging instruments
                                
    Foreign exchange contracts
     4,847       2,044       1,363       2,710  
    Options exchange contracts
     -       159       677       51  
    $ 4,847     $ 2,203     $ 2,040     $ 2,761  

 
(*)
Presented as part of other assets.
 
(**)
Presented as part of other payables.

 
B.
The effect of derivative instruments on cash flow hedging and the relationship between income and other comprehensive income for the years ended December 31, 2011 and December 31, 2010 is summarized below:

Gain (Loss) Recognized
in Other Comprehensive
Income on Effective-
Portion of Derivative, net
    
Gain on Effective Portion
of Derivative Reclassified
from Accumulated Other
Comprehensive Income (*)
    
Ineffective Portion of Gain of
Derivative and Amount Excluded
from Effectiveness Testing
Recognized in Income (**)
  
   
December 31,
2011
    
December 31,
2010
    
December 31,
2011
    
December 31,
2010
    
December 31,
2011
    
December 31,
2010
  
Derivatives designated as  hedging instruments
                                    
Foreign exchange contracts
   $ (13,914 )   $ 20,002     $ 7,438     $ -     $ 585     $ -  
Other
     -       -       -       10,115       -       2,034  
    $ (13,914 )   $ 20,002     $ 7,438     $ 10,115     $ 585     $ 2,034  
Derivatives not designated as hedging instruments
                                                
Foreign exchange Contracts
   $ -     $ -     $ -     $ -     $ 461     $ 751  

 
(*) 
Presented as part of revenues/cost of sales
 
(**)
Presented as part of financial expenses

 
C.
The net effect of the cross-currency swaps was approximately $11,000 of losses, of which approximately $19,500 was offset against exchange rate difference, related to Series A Notes and approximately $8,500 was offset against interest expenses.
 
 
D.
The notional amounts of outstanding foreign exchange forward contracts at December 31, 2011 and December 31, 2010, is summarized below:

   
Forward contracts
  
   
Buy
    
Sell
  
   
December 31,
    
December 31,
  
   
2011
    
2010
    
2011
    
2010
  
Euro
   $ 57,022     $ 16,076     $ 154,251     $ 240,830  
GBP
     30,868       20,475       45,095       85,980  
NIS
     654,105       114,284       -       -  
Other
     14,073       30,412       34,120       54,572  
    $ 756,068     $ 181,247     $ 233,466     $ 381,382