DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 2014

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

       The Company is exposed to global market risks, including risks from changes in FX rates and changes in interest rates. Accordingly, the Company uses derivatives in certain instances to manage the aforementioned financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for speculative purposes.

Interest Rate Swaps

       In the fourth quarter of 2010, the Company entered into interest rate swaps with a total notional amount of $300 million to convert the fixed interest rate on the Series 2005-1 Notes to a floating interest rate based on the 3-month LIBOR. The purpose of this hedge was to mitigate the risk associated with changes in the fair value of the Series 2005-1 Notes, thus the Company has designated these swaps as fair value hedges. The fair value of the swaps is adjusted quarterly with a corresponding adjustment to the carrying value of the Series 2005-1 Notes. The changes in the fair value of the hedges and the underlying hedged item generally offset and the net cash settlements on the swaps are recorded each period within interest income(expense), net, in the Company's consolidated statement of operations.

Foreign Exchange Forwards

       The Company also enters into foreign exchange forwards to mitigate the change in fair value on certain assets and liabilities denominated in currencies other than asubsidiary's functional currency. These forward contracts are not designated as accounting hedges under the applicable sections of Topic 815 of the ASC. Accordingly, changes in the fair value of these contracts are recognized immediately in other non-operating (expense) income, net in the Company's consolidated statements of operations along with the FX gain or loss recognized on the assets and liabilities denominated in a currency other than the subsidiary's functional currency. These contracts have expiration dates at various times through February 2015.

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

	March 31,		December 31,
	2014		2013
Notional amount of currency pair:
Contracts to purchase USD with euros	$	80.2	$	14.2
Contracts to sell USD for euros	$	54.3	$	53.2
Contracts to purchase USD with GBP	$	7.1	$	-
Contracts to purchase USD with other foreign currencies	$	2.4	$	-
Contracts to purchase euros with other foreign currencies	€	13.1	€	13.1
Contracts to purchase euros with GBP	€	22.7	€	22.1
Contracts to sell euros for GBP	€	51.2	€	-

Net Investment Hedges

The Company enters into foreign currency forward contracts to hedge the exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against adverse changes in foreign exchange rates. These forward contracts are designated as accounting hedges under the applicable sections of Topic 815 of the ASC. Hedge effectiveness is assessed based on the overall changes in the fair value of the forward contracts on a pre-tax basis. For hedges that meet the effectiveness requirements, any change in the fair value for the hedge is recorded in the currency translation adjustment component of AOCI.Any change in the fair value of these hedges that is the result of ineffectiveness would be recognized immediately in other non-operating (expense) income in the Company's consolidated statement of operations. These outstanding contracts expire in June 2014 for contracts to sell euros for USD and in November 2014 for contracts to sell Japanese yen for USD.

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

	March 31,		December 31,
	2014		2013
Notional amount of currency pair:
Contracts to sell euros for USD	€	50.0	€	50.0
Contracts to sell Japanese yen for USD	￥	19,700	￥	19,700

       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
Derivatives Instruments	Balance Sheet Location	March 31, 2014		December 31, 2013
Assets:
Derivatives designated as accounting hedges:
Interest rate swaps	Other assets	$	5.8	$	10.3
FX forwards on net investment in certain foreign subsidiaries	Other current assets		5.6		9.3
Total derivatives designated as accounting hedges			11.4		19.6
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Other current assets		0.5		0.9
Total assets		$	11.9	$	20.5
Liabilities:
Derivatives designated as accounting hedges:
FX forwards on net investment in certain foreign subsidiaries	Accounts payable and accrued liabilities		0.5		1.0
Derivatives not designated as accounting hedges:
FX forwards on certain assets and liabilities	Accounts payable and accrued liabilities		1.0		0.7
Total liabilities		$	1.5	$	1.7

The following table summarizes the net gain (loss) onthe 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 hedges:

			Amount of gain (loss) recognized in the consolidated statements of operations
			Three Months Ended
			March 31,
Derivatives designated as fair value accounting hedges	Location on Statement of Operations		2014		2013
Interest rate swaps	Interest income(expense), net	$	(1.5)	$	1.1
Derivatives not designated as accounting hedges
Foreign exchange forwards	Other non-operating income (expense), net	$	(0.4)	$	(1.1)

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
	March 31,					March 31,					March 31,
	2014		2013			2014		2013			2014		2013
Interest rate swaps		-		-	Interest income (expense), net		-		(0.4)	N/A		-		-

       All gains and losses on interest rate swaps designated as cash flow hedgeswere initially recognized through AOCI. Realized gains and losses reported in AOCI were reclassified into interest income(expense), net as the underlying transaction was recognized.

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
	March 31,					March 31,					March 31,
	2014		2013			2014		2013			2014		2013
FX forwards	$	(2.1)	$	0.8	N/A	$	-	$	-	N/A	$	-	$	-

All gains and losses on derivatives designated as net investment hedges are recognized in the currency translation adjustment component of AOCI.

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

		Losses, net of tax
		March 31,		December 31,
		2014		2013
FX forwards on net investment hedges		$	(0.6)	$	1.5
	Total	$	(0.6)	$	1.5