Derivative Instruments, Hedging Activities and Fair Value (Tables)

3 Months Ended

Mar. 31, 2012

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
March 31, 2012
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	28	Other current liabilities	$	—
Cross currency interest rate swaps	Other assets	38,289		Noncurrent liabilities	5,353
Total derivatives designated as hedging instruments		$	38,317		$	5,353
Derivates not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	518	Other current liabilities	$	1,488

	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
Derivates 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

(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 March 31, 2012:
Foreign currency forward exchange contracts	$	(362	)	Cost of services and products sold	$	34		$	—
Cross-currency interest rate swaps	1,339				—		Cost of services and products sold	(11,247		) (a)
	$	977			$	34		$	(11,247	)
For the three months ended March 31, 2011:
Foreign currency forward exchange contracts	$	(527	)		$	—		$	—
Cross-currency interest rate swaps	7,821				—		Cost of services and products sold	(18,781		) (a)
	$	7,294			$	—		$	(18,781	)

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

	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative for the Three Months Ended March 31 (a)
(In thousands)		2012			2011
Foreign currency forward exchange contracts	Cost of services and products sold	$	(4,694	)	$	(5,121	)

(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

March 31, 2012

(In thousands)	Type	U.S. Dollar Equivalent		Maturity	Recognized Gain (Loss)
British pounds sterling	Sell	$	2,776	April 2012	$	(4	)
British pounds sterling	Buy	2,405		April 2012	3
Euros	Sell	185,694		April 2012 through June 2012	(1,144		)
Euros	Buy	106,894		April 2012 through June 2012	88
Other currencies	Sell	4,384		April 2012 through June 2012	(10		)
Other currencies	Buy	8,947		April 2012	125
Total		$	311,100		$	(942	)

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 rupee rate

Schedule of fair value of financial instruments

(In thousands)	March 31 2012		December 31 2011
Assets
Foreign currency forward exchange contracts	$	546	$	3,186
Cross-currency interest rate swaps	38,289		44,636
Liabilities
Foreign currency forward exchange contracts	1,488		1,207
Cross-currency interest rate swaps	5,353		1,792

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

	Three Months Ended March 31
(In thousands)	2012		2011
Balance at beginning of period	$	—	$	3,872
Acquisitions during the period	—		—
Fair value adjustments included in earnings	—		(3,966		)
Effect of exchange rate changes	—		94
Balance at end of period	$	—	$	—