Fair Value Measurement

9 Months Ended

Sep. 30, 2012

Fair Value Measurement

16. Fair Value Measurement

Certain assets and liabilities are required to be recorded at fair value on a recurring basis. The Company’s only assets and liabilities adjusted to fair value on a recurring basis are pension and postretirement plan assets, foreign exchange forward contracts and interest rate swaps. See Note 15 for further discussion on the fair value of the Company’s foreign exchange forward contracts and interest rate swaps as of September 30, 2012 and December 31, 2011.

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities at fair value on a nonrecurring basis, generally as a result of acquisitions or the remeasurement of assets resulting in impairment charges. See Note 2 for further discussion on the fair value of assets and liabilities associated with acquisitions. Assets measured at fair value on a nonrecurring basis subsequent to initial recognition during the three and nine months ended September 30, 2012 and 2011 are summarized below:

	Three Months Ended September 30, 2012				Nine Months Ended September 30, 2012				As of September 30, 2012
	Impairment charge		Fair value measurement (Level 3)		Impairment charge		Fair value measurement (Level 3)		Net book value
Long-lived assets held and used	$	0.6	$	1.2	$	5.2	$	4.6	$	3.9
Long-lived assets held for sale or disposal		0.9		—		14.9		5.4		5.4
Total	$	1.5	$	1.2	$	20.1	$	10.0	$	9.3

	Three Months Ended September 30, 2011				Nine Months Ended September 30, 2011				As of September 30, 2011
	Impairment charge		Fair value measurement (Level 3)		Impairment charge		Fair value measurement (Level 3)		Net book value
Long-lived assets held and used	$	12.1	$	3.4	$	15.7	$	71.9	$	66.5
Long-lived assets held for sale or disposal		12.4		2.3		27.3		3.6		3.4
Total	$	24.5	$	5.7	$	43.0	$	75.5	$	69.9

There were no estimated costs to sell related long-lived assets held for sale for the three months ended September 30, 2012. For the nine months ended September 30, 2012, the fair values of assets held for sale were reduced by $0.4 million for estimated costs to sell.

The fair values of the long-lived assets held and used and long-lived assets held for sale or disposal were determined using Level 3 inputs and were estimated based on discussions with real estate brokers, review of comparable properties, if available, discussions with machinery and equipment brokers, dealer quotes and internal expertise related to the current marketplace conditions. Unobservable inputs obtained from third parties are adjusted as necessary for the condition and attributes of the specific asset. The Company’s accounting and finance management determines the valuation policies and procedures for Level 3 fair value measurements and is responsible for the development and determination of unobservable inputs.

See Note 14 for the fair value of the Company’s debt.