Other Expense, net

6 Months Ended

Jun. 30, 2012

Other Expense, net [Abstract]

Other Expense, net

(17) Other Expense, net

The following table provides details of other expense, net.

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Interest and dividend income	$	3.2		$	2.2		$	6.6		$	4.2
Net foreign exchange transaction losses		(6.3	)		(3.1	)		(10.1	)		(7.5	)
Settlement agreement and related costs		(0.1	)		(0.2	)		(0.2	)		(0.6	)
Other, net		(2.4	)		(0.9	)		(6.0	)		(2.2	)
Other expense, net	$	(5.6	)	$	(2.0	)	$	(9.7	)	$	(6.1	)

Impairment of Equity Method Investment

In September 2007, we established a joint venture that supports our Food Solutions segment. We account for the joint venture under the equity method of accounting with our proportionate share of net income or losses included in other expense, net, on the consolidated statements of operations.

During 2012, the joint venture performed below expectations, resulting in reduced cash flow and increasing debt obligations. Due to these events, we evaluated our equity method investment for impairment. An equity method investment is impaired if the fair value of the investment is less than its carrying value. If there is no readily determinable fair value, then we are required to test it for impairment whenever an event or change in circumstances occurs that could have a significant impact on the fair value of the investment. If the investment is determined to be impaired, we must also determine if the impairment is other-than-temporary. During the three months ended June 30, 2012, based on reviewing undiscounted cash flow information, we determined that the fair value of our investment was less than its carrying value and that this impairment was other-than-temporary.

In connection with the establishment of the joint venture in 2007, we issued a guarantee in support of an uncommitted credit facility agreement that was entered into by the joint venture. The initial term of the credit facility was two years, which was renewed with the approval of both us and the joint venture. Under the terms of the guarantee, if the joint venture were to default under the terms of the credit facility, the lender would be entitled to seek payment of the amounts due under the credit facility from us. As of June 30, 2012, the joint venture has performed its obligations under the terms of the credit facility. We have previously recorded the fair value of this guarantee as a component of our investment in this joint venture and included a corresponding liability on our condensed consolidated balance sheets. However, as a result of the impairment, we have included the guarantee liability in other current liabilities on the condensed consolidated balance sheet as of June 30, 2012 as we believe it is probable that we will need to perform under this guarantee. As of June 30, 2012, the debt holders have not requested that we perform under the terms of the guarantee.

As a result, we recognized other-than-temporary impairment of $26 million ($18 million, net of taxes, or $0.09 per diluted share). This impairment primarily consisted of the recognition of a current liability for the guarantee of the uncommitted credit facility mentioned above of $20 million. The other component of the impairment was a $4 million write-down of the carrying value of the investment to zero at June 30, 2012. We also recorded provisions for bad debt on receivables due from the joint venture to the Company of $2 million, which is included in marketing, administrative and development expenses and impacted both of our food businesses. As of June 30, 2012, we have no further obligation to support the operations of the joint venture in the future.