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Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2013
Fair Value of Financial Instruments  
Fair Value of Financial Instruments

Note 4—Fair Value of Financial Instruments

        The Company measures the following financial assets and liabilities at fair value on a recurring basis. The following tables set forth the Company's financial instruments and presents them within the fair value hierarchy using the lowest level of input that is significant to the fair value measurement at December 31, 2013 and 2012 (in millions):

December 31, 2013
  Total   Quoted Prices in
Active Markets
Available
(Level 1)		   Significant Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		  

Assets:

                          

Cash equivalents

   $ 6.8   $ 6.8   $ —   $ —  

Restricted cash

     2.7     2.7     —     —  

Foreign exchange contracts

     2.3     —     2.3     —  

Embedded derivatives in purchase and delivery contracts

     0.2     —     0.2     —  

Fixed price commodity contracts

     0.1     —     0.1     —  

Long-term restricted cash

     4.0     4.0              
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets recorded at fair value

   $ 16.1   $ 13.5   $ 2.6   $ —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Liabilities:

                          

Contingent consideration

   $ 7.0   $ —   $ —   $ 7.0  

Embedded derivatives in purchase and delivery contracts

     0.4     —     0.4     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total liabilities recorded at fair value

   $ 7.4   $ —   $ 0.4   $ 7.0  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   


 

December 31, 2012
  Total   Quoted Prices in
Active Markets
Available
(Level 1)		   Significant Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		  

Assets:

                          

Cash equivalents

   $ 8.2   $ 8.2   $ —   $ —  

Restricted cash

     3.7     3.7     —     —  

Foreign exchange contracts

     1.8     —     1.8     —  

Embedded derivatives in purchase and delivery contracts

     0.3     —     0.3     —  

Long-term restricted cash

     3.9     3.9     —     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets recorded at fair value

   $ 17.9   $ 15.8   $ 2.1   $ —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Liabilities:

                          

Contingent consideration

   $ 3.7   $ —   $ —   $ 3.7  

Embedded derivatives in purchase and delivery contracts

     0.3     —     0.3     —  

Fixed price commodity contracts

     0.2     —     0.2     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total liabilities recorded at fair value

   $ 4.2   $ —   $ 0.5   $ 3.7  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

        Derivative financial instruments are classified within level 2 because there is not an active market for each derivative contract, however, the inputs used to calculate the value of the instruments are obtained from active markets.

        The fair value of the long-term fixed interest rate debt, which has been classified as Level 2, was $244.1 and $255.6 million at December 31, 2013 and 2012, respectively, based on market and observable sources with similar maturity dates.

        The Company measures certain assets and liabilities at fair value with changes in fair value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities during the year ended December 31, 2013.

        As part of certain acquisitions in 2013 and 2012, the Company recorded contingent consideration liabilities that have been classified as Level 3 in the fair value hierarchy. The contingent consideration represents the estimated fair value of future payments to the former shareholders of applicable acquired companies based on achieving annual revenue targets in certain years as specified in the purchase and sale agreements. The Company initially valued the contingent consideration by using the discounted cash flow method. Changes to the fair value of the contingent consideration recognized in earnings for the years ended December 31, 2013 was $1.5 million and was recorded to other charges, net in the consolidated statements of income and comprehensive income. The following table sets forth the changes in contingent consideration liabilities for the years ended December 31, 2013 and 2012 (in millions):

Balance at December 31, 2011

   $ —  

Current period additions

     3.7  

Current period adjustments

     —  

Current period settlements

     —  

Foreign currency effect

     —  
       
​ ​ ​ ​ ​

Balance at December 31, 2012

     3.7  

Current period additions

     5.8  

Current period adjustments

     (1.5 )

Current period settlements

     (1.3 )

Foreign currency effect

     0.3  
       
​ ​ ​ ​ ​

Balance at December 31, 2013

   $ 7.0  
       
​ ​ ​ ​ ​
​ ​ ​ ​ ​