Fair Value

6 Months Ended

Jun. 30, 2011

Fair Value [Abstract]

Fair Value [Text Block]

13. Fair Value

Financial assets and liabilities that are measured at fair value on a recurring basis at June 30, 2011 and December 31, 2010 were (dollars in millions):

June 30, 2011	Level 1		Level 2		Level 3	Total
Assets:
Cash and cash equivalents	$	986.3				$	986.3
Short-term investments		17.0					17.0
Forward foreign exchange contracts			$	5.9			5.9
Available-for-sale securities		3.7					3.7
Liabilities:
Interest rate swaps			$	6.5		$	6.5

At June 30, 2011, forward foreign exchange contracts are included in other current assets, available-for-sale securities are included in other assets and interest rate swaps are included in long-term liabilities in our unaudited condensed consolidated balance sheet.

December 31, 2010	Level 1		Level 2		Level 3	Total
Assets:
Cash and cash equivalents	$	2,288.7				$	2,288.7
Short-term investments		11.3					11.3
Forward foreign exchange contracts			$	7.2			7.2
Available-for-sale securities		3.4					3.4
Liabilities:
Interest rate swaps			$	24.2		$	24.2

At December 31, 2010, forward foreign exchange contracts are included in other current assets, available-for-sale securities are included in other assets and interest rate swaps are included in long-term liabilities in our consolidated balance sheet.

The carrying amounts and fair values of our financial instruments at June 30, 2011 and December 31, 2010 were (dollars in millions):

	2011				2010
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	$	986.3	$	986.3	$	2,288.7	$	2,288.7
Short-term investments		17.0		17.0		11.3		11.3
Forward foreign exchange contracts		5.9		5.9		7.2		7.2
Available-for-sale securities		3.7		3.7		3.4		3.4
Cost method investments		24.4		24.4		24.8		24.8
Liabilities:
Short-term borrowings	$	63.9	$	63.9	$	50.2	$	50.2
Interest rate swaps		6.5		6.5		24.2		24.2
Debt		3,149.2		3,381.7		3,126.0		3,328.0

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Short-term investments

Short-term investments primarily consist of time deposits with financial institutions that we expect to convert into cash in our current operating cycle, generally within one year. Short-term investments are carried at cost, which approximates fair value.

Available-for-sale securities

Available-for-sale securities are carried at quoted market prices.

Forward foreign exchange contracts

The estimated fair values of derivative positions in forward foreign exchange contracts are based on quotations received from third party banks and represent the net amount required to terminate the positions, taking into consideration market rates and counterparty credit risk.

Cost method investments

Cost method investments are carried at cost, which approximates or is less than fair value.

Short-term borrowings

Short-term borrowings consist of bank overdrafts and credit lines of our international subsidiaries. Due to the short-term nature of these instruments, carrying value approximates fair value.

Interest rate swaps

Our interest rate swaps are fair value hedges where the fair value is derived from the present value of future cash flows using valuation models that are based on readily observable market data such as interest rates and yield curves, taking into consideration counterparty credit risk.

Debt

Our debt includes fixed rate debt and convertible debt. The fair value of these instruments is based on quoted market prices.