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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2012
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, the fair value of the Company's outstanding derivative instruments as of December 31, 2012 and December 31, 2011 is summarized below:

 

                 
    Asset Derivatives (*)   Liability Derivatives (**)
    December 31, December 31,   December 31,   December 31,
    2012   2011   2012   2011
Derivatives designated as hedging
instruments		                
Foreign exchange contracts $ 21,100 $ 9,908 $

3,095

 $ 23,914
Cross-currency interest rate swaps   22,415   8,877  

-

   -
    43,515   18,785  

3,095

   23,914
Derivatives not designated as hedging
instruments		                
Foreign exchange contracts   3,638   4,847  

1,897

   1,363
Options exchange contracts   -   -  

-

   677
  $ 3,638 $ 4,847 $

1,897

  $ 2,040

 

(*) Presented as part of other assets receivables and long term other receivables.

(**) Presented as part of other payables and long term 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, 2012 and December 31, 2011 is summarized below:

                           
                      Ineffective Portion of Gain of
    Gain (Loss) Recognized   Gain (loss) on Effective Portion   Derivative and Amount
    in Other Comprehensive   of Derivative Reclassified   Excluded from Effectiveness
    Income on Effective-   from Accumulated Other   Testing Recognized in Income
    Portion of Derivative, net   Comprehensive Income (*)     (**)  
    December 31,   December 31,   December 31, December 31,   December 31, December 31,
    2012     2011   2012   2011   2012   2011
Derivatives designated as
hedging instruments		                          
 Foreign exchange contracts $ 12,277   $ (13,914)  $ (15,831) $ 7,438 $ 180 $ 585
Derivatives not designated
as hedging instruments		                          
Foreign exchange Contracts $ - $ - $ - $ - $ 150 $ 461

 

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

(**) Presented as part of financial income (expenses), net

 

 

 

C. The net effect of the cross-currency swaps was approximately $11,981 of gain, of which approximately $2,900 was offset against exchange rate difference, related to Series A Notes and approximately $9,081 was offset against interest expenses.

D. The notional amounts of outstanding foreign exchange forward contracts at December 31, 2012 and December 31, 2011, is summarized below:

                 
        Forward contracts    
    Buy   Sell
    December 31,   December 31,
    2012   2011   2012   2011
Euro $ 60,665 $ 57,022 $ 131,696 $ 154,251
GBP   45,262   30,868   28,268   45,095
NIS   386,017   654,105   -   -
Other   4,344   14,073   14,871   34,120
  $ 496,288 $ 756,068 $ 174,835 $ 233,466