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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 9 Months Ended
Sep. 30, 2012
Fair Value of Derivative Instruments

The table below shows the classification between assets and liabilities on the Company’s consolidated balance sheets for the fair value of the derivative instruments:

 

    

Fair Value of Derivative Instruments

  
     

Balance Sheet
Location

    September 30,
2012		      December 31,
2011		  

Assets:

         

Derivatives designated as accounting hedges:

         

Interest rate swaps

   

Other assets

    $ 18.4      $ 11.5  
     

 

 

     

 

 

  

Total derivatives designated as accounting hedges

         18.4        11.5  

Derivatives not designated as accounting hedges:

         

FX forwards on certain assets and liabilities

   

Other current assets

      2.0        1.1  
     

 

 

     

 

 

  

Total

       $ 20.4      $ 12.6  
     

 

 

     

 

 

  

Liabilities:

         

Derivatives designated as accounting hedges:

         

Interest rate swaps

   

Accounts payable and accrued liabilities

    $ 1.5      $ 4.5  

FX forwards on net investment in certain foreign subsidiaries

   

Accounts payable and accrued liabilities

      1.8        —     
     

 

 

     

 

 

  

Total derivatives designated as accounting hedges

         3.3        4.5  

Derivatives not designated as accounting hedges:

         

FX forwards on certain assets and liabilities

   

Accounts payable and accrued liabilities

      0.6        2.3  
     

 

 

     

 

 

  

Total

       $ 3.9      $ 6.8  
     

 

 

     

 

 

  
Summary of Net Gain (Loss) on Foreign Exchange Forwards Not Designated as Hedging Instruments and on Interest Rate Swaps Designated as Fair Value Hedge

The following table summarizes the net gain (loss) on the Company’s foreign exchange forwards which are not designated as hedging instruments as well as the gain (loss) on the interest rate swaps designated as fair value hedge:

 

          Amount of Gain (Loss) Recognized in
consolidated statements of operations		  
          Three Months Ended     Nine Months Ended  
          September 30,     September 30,  

Derivatives designated as accounting hedges

   

Location on Income Statement

    2012      2011     2012      2011  

Interest rate swaps

   

Interest expense, net

    $ 0.9      $ 1.0     $ 2.6      $ 3.1  
     

 

 

     

 

 

    

 

 

     

 

 

  

Derivatives not designated as accounting hedges

                                

Foreign exchange forwards

   

Other non-operating (expense) income

    $ 0.4      $ (3.1 )    $ —         $ (0.6 ) 
     

 

 

     

 

 

    

 

 

     

 

 

  
Cumulative Amount of Unrecognized Hedge Losses Recorded in Accumulated Other Comprehensive Income

The cumulative amount of unrecognized hedge losses recorded in AOCI is as follows:

 

     Unrecognized Losses, net of tax  
     September 30,     December 31,  
     2012     2011  

FX forwards on net investment hedges

    $ (1.4 )    $ —     

Interest rate swaps (1)

      (1.2 )      (3.0 ) 
  

 

 

    

 

 

  

Total

    $ (2.6 )    $ (3.0 ) 
  

 

 

    

 

 

  

 

(1) 

The unrecognized hedge losses relating to the cash flow hedges on the 2008 Term Loan are expected to be reclassified into earnings within the next twelve months as the underlying hedge ends with the full repayment of the Term Loan in the first half of 2013.
Cash Flow Hedging
  
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards

The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forwards:

 

     September 30,      December 31,  
     2012      2011  

Notional amount of Currency Pair:

      

Contracts to purchase USD with euros

    $ 34.6      $ 27.5  

Contracts to sell USD for euros

    $ 47.1      $ 47.7  

Contracts to purchase USD with GBP

    $ 4.2      $ 2.4  

Contracts to sell USD for GBP

    $ 4.2      $ 17.6  

Contracts to purchase USD with other foreign currencies

    $ 8.7      $ 3.2  

Contracts to sell USD for other foreign currencies

    $ 6.5      $ 7.6  

Contracts to purchase euros with other foreign currencies

    € 20.7      € 13.6  

Contracts to purchase euros with GBP

    € 8.7      € 1.6  

Contracts to sell euros for GBP

    € 9.9      € 7.2  
Gains and Losses on Derivatives Designated as Hedging Instruments

The following table provides information on gains/(losses) on the Company’s cash flow hedges:

 

Derivatives in

Cash Flow

Hedging

Relationships

    Amount of
Gain/(Loss)
Recognized in
AOCI on Derivative
(Effective Portion)		    

Location of

Gain/(Loss)
Reclassified from

AOCI into Income

(Effective Portion)

    Amount of
Gain/(Loss)
Reclassified from
AOCI into Income
(Effective Portion)		    

Location of

Gain/(Loss)

Recognized in

Income on Derivative

(Ineffective Portion

and Amount

Excluded from

Effectiveness Testing)

    Gain/(Loss)
Recognized in
Income on Derivative
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)		  
     Three Months Ended          Three Months Ended          Three Months Ended  
     September 30,          September 30,          September 30,  
     2012     2011          2012     2011          2012      2011  

FX options

    $ —        $ —       

Revenue

    $ —        $ —       

Revenue

    $ —         $ —     

Interest rate swaps

      —          (0.1 )   

Interest Expense

      (0.6 )      (0.9 )   

N/A

      —           —     
  

 

 

    

 

 

       

 

 

    

 

 

       

 

 

     

 

 

  

Total

    $ —        $ (0.1 )       $ (0.6 )    $ (0.9 )       $ —         $ —     
  

 

 

    

 

 

       

 

 

    

 

 

       

 

 

     

 

 

  
     Nine Months Ended          Nine Months Ended          Nine Months Ended  
     September 30,          September 30,          September 30,  
     2012     2011          2012     2011          2012      2011  

FX options

    $ —        $ —       

Revenue

    $ —        $ (0.2 )   

Revenue

    $ —         $ —     

Interest rate swaps

      (0.1 )      (0.5 )   

Interest Expense

      (1.9 )      (2.2 )   

N/A

      —           —     
  

 

 

    

 

 

       

 

 

    

 

 

       

 

 

     

 

 

  

Total

    $ (0.1 )    $ (0.5 )       $ (1.9 )    $ (2.4 )       $ —         $ —     
  

 

 

    

 

 

       

 

 

    

 

 

       

 

 

     

 

 

  
Net Investment Hedging
  
Summary of Notional Amounts of Outstanding Foreign Exchange Forwards

The following table summarizes the notional amounts of the Company’s outstanding foreign exchange forward contracts that are designated as net investment hedges:

 

     September 30,      December 31,  
     2012      2011  

Notional amount of Currency Pair:

      

Contracts to sell euros for USD

    € 50.0        N/A   
Gains and Losses on Derivatives Designated as Hedging Instruments

The following table provides information on gains/(losses) on the Company’s net investment hedges:

 

Derivatives in

Net Investment

Hedging

Relationships

    Amount  of
Gain/(Loss)
Recognized in
AOCI  on Derivative
(Effective Portion)		     

Location of

Gain/(Loss)

Reclassified from

AOCI into Income

(Effective Portion)

    Amount  of
Gain/(Loss)
Reclassified  from
AOCI into Income
(Effective Portion)		     

Location of

Gain/(Loss)

Recognized in

Income on Derivative

(Ineffective Portion

and Amount

Excluded from

Effectiveness Testing)

    Gain/(Loss)
Recognized in
Income on Derivative
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)		  
     Three Months Ended           Three Months Ended           Three Months Ended  
     September 30,           September 30,           September 30,  
     2012     2011           2012      2011           2012      2011  

FX forwards

    $ 0.1     $ —        

N/A

    $ —         $ —        

N/A

    $ —         $ —     
  

 

 

    

 

 

        

 

 

     

 

 

        

 

 

     

 

 

  

Total

    $ 0.1     $ —            $ —         $ —            $ —         $ —     
  

 

 

    

 

 

        

 

 

     

 

 

        

 

 

     

 

 

  
     Nine Months Ended           Nine Months Ended           Nine Months Ended  
     September 30,           September 30,           September 30,  
     2012     2011           2012      2011           2012      2011  

FX forwards

    $ (1.4 )    $ —        

N/A

    $ —         $ —        

N/A

    $ —         $ —     
  

 

 

    

 

 

        

 

 

     

 

 

        

 

 

     

 

 

  

Total

    $ (1.4 )    $ —            $ —         $ —            $ —         $ —