Derivative Financial Instruments
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Dec. 31, 2011
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Derivative Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments |
NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS Derivative Contracts Not Designated as Hedged Instruments There were no derivative contracts not designated as hedged instruments as of December 31, 2011 and 2010. Derivative Contracts Designated as Hedged Instruments The Company held the following contracts designated as hedged instruments as of December 31, 2011 and 2010.
The Company accounts for these contracts as cash flow hedges and tests effectiveness by determining whether changes in the cash flow of the derivative offset, within a range, changes in the cash flow of the hedged item. For contracts that qualify as effective hedge instruments, the effective portion of gains and losses resulting from changes in fair value of the instruments are included in accumulated other comprehensive income and reclassified to sales in the period the underlying hedge item is recognized in earnings. $(346) and $(43) were reclassified to sales during the years ended December 31, 2011 and 2010, respectively. As of December 31, 2010, the Company reported an accumulated unrealized loss on hedging activities; net of $(237) in accumulated other comprehensive income. During the year ended December 31, 2011, the Company reported an adjustment to accumulated other comprehensive income of $743, as a result of the change in fair value of these contracts, resulting in an accumulated unrealized gain on hedging activities, net of $506 reported as of December 31, 2011 in accumulated other comprehensive income. The following table presents the balance sheet classification and fair value of derivative instruments as of December 31, 2011 and 2010:
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