Derivative Instruments, Hedging Activities and Fair Value (Tables)

6 Months Ended

Jun. 30, 2012

Derivative Instruments, Hedging Activities And Fair Value

Schedule of fair value of outstanding derivative contracts

The fair values of outstanding derivative contracts recorded as assets and liabilities on the Condensed Consolidated Balance Sheets at June 30, 2012 and December 31, 2011 were as follows:

	Asset Derivatives			Liability Derivatives
(In thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
June 30, 2012
Derivatives designated as hedging instruments:
Cross currency interest rate swaps	Other assets	55,367		Noncurrent liabilities	—
Total derivatives designated as hedging instruments		$	55,367		$	—
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	1,241	Other current liabilities	$	1,260

	Asset Derivatives			Liability Derivatives
(In thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
December 31, 2011
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	274	Other current liabilities	$	—
Cross currency interest rate swaps	Other assets	44,636		Noncurrent liabilities	1,792
Total derivatives designated as hedging instruments		$	44,910		$	1,792
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	2,912	Other current liabilities	$	1,207

Schedule of effect of derivative instruments

The effect of derivative instruments on the Condensed Consolidated Statements of Income and the Condensed Consolidated Statements of Comprehensive Income for the three and six months endedJune 30, 2012 and 2011 was as follows:

Derivatives Designated as Hedging Instruments

(In thousands)	Amount of Gain (Loss)  Recognized in Other Comprehensive Income (“OCI”) on Derivative - Effective Portion			Location of Gain (Loss) Reclassified from Accumulated OCI into Income - Effective Portion	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income - Effective Portion		Location of Gain (Loss) Recognized in Income on Derivative - Ineffective Portion and Amount Excluded from Effectiveness Testing	Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portion and Amount Excluded from Effectiveness Testing
For the three months ended June 30, 2012:
Foreign currency forward exchange contracts	$	179		Cost of services and products sold	$	222		$	—
Cross-currency interest rate swaps	2,440				—		Cost of services and products sold	19,992			(a)
	$	2,619			$	222		$	19,992
For the three months ended June 30, 2011:
Foreign currency forward exchange contracts	$	(172	)		$	—		$	—
Cross-currency interest rate swaps	1,308				—		Cost of services and products sold	(4,676		)	(a)
	$	1,136			$	—		$	(4,676	)

(a)   These gains (losses) offset foreign currency fluctuation effects on the debt principal.

(In thousands)	Amount of Gain (Loss)  Recognized in Other Comprehensive Income (“OCI”) on Derivative - Effective Portion			Location of Gain (Loss) Reclassified from Accumulated OCI into Income - Effective Portion	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income - Effective Portion		Location of Gain (Loss) Recognized in Income on Derivative - Ineffective Portion and Amount Excluded from Effectiveness Testing	Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portion and Amount Excluded from Effectiveness Testing
For the six months ended June 30, 2012:
Foreign currency forward exchange contracts	$	(183	)	Cost of services and products sold	$	256		$	—
Cross-currency interest rate swaps	3,779				—		Cost of services and products sold	8,745			(a)
	$	3,596			$	256		$	8,745
For the six months ended June 30, 2011:
Foreign currency forward exchange contracts	$	(699	)		$	—		$	—
Cross-currency interest rate swaps	9,129				—		Cost of services and products sold	(23,457		)	(a)
	$	8,430			$	—		$	(23,457	)

(a)   These gains (losses) offset foreign currency fluctuation effects on the debt principal.

Derivatives Not Designated as Hedging Instruments

	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative for the Three Months Ended June 30 (a)
(In thousands)		2012		2011
Foreign currency forward exchange contracts	Cost of services and products sold	$	7,199	$	(1,956	)

(a) These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures.

	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative for the Six Months Ended June 30 (a)
(In thousands)		2012		2011
Foreign currency forward exchange contracts	Cost of services and products sold	$	2,505	$	(7,077	)

(a) These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures.

Summary of foreign currency forward exchange contracts, by major currency

The following tables summarize, by major currency, the contractual amounts of the Company’s foreign currency forward exchange contracts in U.S. dollars at June 30, 2012 and December 31, 2011.  The “Buy” amounts represent the U.S. dollar equivalent of commitments to purchase foreign currencies, and the “Sell” amounts represent the U.S. dollar equivalent of commitments to sell foreign currencies.  The recognized gains and losses offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures.

June 30, 2012

(In thousands)	Type	U.S. Dollar Equivalent		Maturity	Recognized Gain (Loss)
British pounds sterling	Sell	$	3,577	July 2012	$	20
British pounds sterling	Buy	2,215		July 2012	(7		)
Euros	Sell	194,376		July 2012 through December 2012	879
Euros	Buy	106,313		July 2012 through August 2012	(801		)
Other currencies	Sell	2,558		July 2012 through September 2012	7
Other currencies	Buy	37,361		July 2012 through August 2012	(117		)
Total		$	346,400		$	(19	)

December 31, 2011

(In thousands)	Type	U.S. Dollar Equivalent		Maturity	Recognized Gain (Loss)
British pounds sterling	Sell	$	18,350	January 2012	$	(20	)
British pounds sterling	Buy	4,364		January 2012	(12		)
Euros	Sell	178,889		January 2012 through October 2012	2,345
Euros	Buy	105,247		January 2012 through April 2012	(878		)
Other currencies	Sell	2,957		January 2012 through March 2012	62
Other currencies	Buy	14,656		January 2012	235
Total		$	324,463		$	1,732

Summary of notional amount of cross-currency interest rate swaps

			Interest Rates
(In millions)	Contractual Amount		Receive	Pay
Maturing 2018	$	250.0	Fixed U.S. dollar rate	Fixed euro rate
Maturing 2020	220.0		Fixed U.S. dollar rate	Fixed British pound sterling rate
Maturing 2013	1.8		Floating U.S. dollar rate	Fixed Indian rupee rate

Schedule of fair value of financial instruments

The following table indicates the different financial instruments of the Company at June 30, 2012 and December 31, 2011:

Level 2 Fair Value Measurements

(In thousands)	June 30 2012		December 31 2011
Assets
Foreign currency forward exchange contracts	$	1,241	$	3,186
Cross-currency interest rate swaps	55,367		44,636
Liabilities
Foreign currency forward exchange contracts	1,260		1,207
Cross-currency interest rate swaps	—		1,792

Reconciliation of liabilities measured on a recurring basis using unobservable inputs (Level 3)

The following table reconciles the beginning and ending balances for liabilities measured on a recurring basis using unobservable inputs (Level 3) for the three and six months endedJune 30:

	Three Months Ended				Six Months Ended
	June 30				June 30
(In thousands)	2012		2011		2012		2011
Balance at beginning of period	$	—	$	—	$	—	$	3,872
Fair value adjustments included in earnings	—		—		—		(3,966		)
Effect of exchange rate changes	—		—		—		94
Balance at end of period	$	—	$	—	$	—	$	—