Derivative Instruments, Hedging Activities and Fair Value (Tables)

9 Months Ended

Sep. 30, 2011

Derivative Instruments, Hedging Activities and Fair Value

Schedule of fair value of outstanding derivative contracts

	Asset Derivatives			Liability Derivatives
(In thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
September 30, 2011
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	349	Other current liabilities	$	3
Cross-currency interest rate swaps	Other assets	43,685		Other liabilities	—
Total derivatives designated as hedging instruments		$	44,034		$	3
Derivates not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	3,397	Other current liabilities	$	2,507

	Asset Derivatives			Liability Derivatives
(In thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
December 31, 2010
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	—	Other current liabilities	$	29
Cross-currency interest rate swaps	Other assets	31,803		Other liabilities	3,831
Total derivatives designated as hedging instruments		$	31,803		$	3,860
Derivates not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	2,787	Other current liabilities	$	1,042

Schedule of effect of derivative 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 September 30, 2011:
Foreign currency forward exchange contracts	$	(154	)		$	—			$	—
Cross-currency interest rate swaps	10,616				—			Cost of services and products sold	19,581		(a)
	$	10,462			$	—			$	19,581
For the three months ended September 30, 2010:
Foreign currency forward exchange contracts	$	5			$	—			$	—
Commodity contracts	40			Cost of services and products sold	(1		)	Cost of services and products sold	26
Cross-currency interest rate swap	1,426				—			Cost of services and products sold	(23,052		)(a)
	$	1,471			$	(1	)		$	(23,026	)

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

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 nine months ended September 30, 2011:
Foreign currency forward exchange contracts	$	(853	)		$	—			$	—
Cross-currency interest rate swaps	19,745				—			Cost of services and products sold	(3,876		)(a)
	$	18,892			$	—			$	(3,876	)
For the nine months ended September 30, 2010:
Foreign currency forward exchange contracts	$	144			$	—			$	—
Commodity contracts	7			Cost of services and products sold	(26		)	Cost of services and products sold	6
Cross-currency interest rate swap	13,989				—			Cost of services and products sold	11,059		(a)
	$	14,140			$	(26	)		$	11,065

(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	Amount of Gain (Loss) Recognized in Income on Derivative for the Three Months Ended September 30 (a)
(In thousands)	Income on Derivative	2011		2010
Foreign currency forward exchange contracts	Cost of services and products sold	$	7,507	$	(5,495	)

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

Derivatives Not Designated as Hedging Instruments

	Location of Gain (Loss) Recognized in	Amount of Gain (Loss) Recognized in Income on Derivative for the Nine Months Ended September 30 (a)
(In thousands)	Income on Derivative	2011		2010
Foreign currency forward exchange contracts	Cost of services and products sold	$	430	$	2,591

(a) These gains (losses) offset amounts recognized in cost of service 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

September 30, 2011

(In thousands)	Type	U.S. Dollar Equivalent		Maturity	Recognized Gain (Loss)
British pounds sterling	Sell	$	44,879	October 2011 through December 2011	$	256
British pounds sterling	Buy	4,640		October 2011 through November 2011	(20		)
Euros	Sell	136,001		October 2011 through April 2012	177
Euros	Buy	78,388		October 2011 through December 2011	533
Other currencies	Sell	4,558		October 2011 through December 2011	279
Other currencies	Buy	17,916		October 2011	10
Total		$	286,382		$	1,235

December 31, 2010

(In thousands)	Type	U.S. Dollar Equivalent		Maturity	Recognized Gain (Loss)
British pounds sterling	Sell	$	54,479	January 2011 through May 2011	$	1,806
British pounds sterling	Buy	208		January 2011 through May 2011	(2		)
Euros	Sell	93,831		January 2011 through February 2011	(104		)
Euros	Buy	44,571		January 2011 through February 2011	(338		)
Other currencies	Sell	5,314		January 2011 through November 2011	(86		)
Other currencies	Buy	15,748		January 2011	441
Total		$	214,151		$	1,717

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 rupee rate

Schedule of fair value of financial instruments

Level 2 Fair Value Measurements

(In thousands)	September 30 2011		December 31 2010
Assets
Foreign currency forward exchange contracts	$	3,745	$	2,787
Cross-currency interest rate swaps	43,685		31,803
Liabilities
Foreign currency forward exchange contracts	2,510		1,071
Cross-currency interest rate swaps	—		3,831

Level 3 Fair Value Measurements

(In thousands)	September 30 2011		December 31 2010
Liabilities
Contingent consideration for acquisitions	$	—	$	3,872

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

Level 3 Liabilities — Contingent Consideration 

	For the Three Months Ended September 30					For the Nine Months Ended September 30
(In thousands)	2011		2010			2011			2010
Balance at beginning of period	$	—	$	4,094		$	3,872		$	9,735
Acquisitions during the period	—		—			—			4,618
Fair value adjustments included in earnings	—		(989		)	(3,966		)	(10,620		)
Effect of exchange rate changes	—		515			94			(113		)
Balance at end of period	$	—	$	3,620		$	—		$	3,620