Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Investments, All Other Investments [Abstract]

Carrying Amount and Estimated Fair Values of Financial Instruments

The amounts recorded in the balance sheet (carrying amount) and the estimated fair values of financial instruments at March 31, 2014 and December 31, 2013 consisted of the following:



	March 31, 2014				December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
(DOLLARS IN THOUSANDS)
Cash and cash equivalents ⁽¹⁾	$	268,584	$	268,584	$	405,505	$	405,505
Credit facilities and bank overdrafts ⁽²⁾	2,557		2,557		984		984
Long-term debt: ⁽³⁾
Senior notes - 2007	500,000		593,909		500,000		590,024
Senior notes - 2006	125,000		137,469		125,000		139,146
Senior notes - 2013	299,760		286,922		299,736		278,770


(1)	The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments.


(2)	The carrying amount of our credit facilities and bank overdrafts approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments.


(3)	The fair value of our long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on our own credit risk.

Derivative Instruments Notional Amount Outstanding

The following table shows the notional amount of the Company’s derivative instruments outstanding as of March 31, 2014 and December 31, 2013:



(DOLLARS IN THOUSANDS)	March 31, 2014		December 31, 2013
Foreign currency contracts	$	234,300	$	255,500
Interest rate swaps	$	375,000	$	375,000

Derivative Instruments Measured at Fair Value

The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected in the Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013:



	March 31, 2014
(DOLLARS IN THOUSANDS)	Fair Value of Derivatives Designated as Hedging Instruments		Fair Value of Derivatives Not Designated as Hedging Instruments		Total Fair Value
Derivative assets ^(a)
Foreign currency contracts	$	746	$	1,943	$	2,689
Interest rate swaps	289		—		289
	$	1,035	$	1,943	$	2,978
Derivative liabilities ^(b)
Foreign currency contracts	$	5,515	$	4,039	$	9,554



	December 31, 2013
(DOLLARS IN THOUSANDS)	Fair Value of Derivatives Designated as Hedging Instruments		Fair Value of Derivatives Not Designated as Hedging Instruments		Total Fair Value
Derivative assets ^(a)
Foreign currency contracts	$	580	$	8,896	$	9,476
Interest rate swaps	670		—		670
	$	1,250	$	8,896	$	10,146
Derivative liabilities ^(b)
Foreign currency contracts	$	6,024	$	2,909	$	8,933


(a)	Derivative assets are recorded to Prepaid expenses and other current assets in the Consolidated Balance Sheet.


(b)	Derivative liabilities are recorded as Other current liabilities in the Consolidated Balance Sheet.

Derivative Instruments Which Were Not Designated as Hedging Instruments

The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statement of Comprehensive Income for the three months ended March 31, 2014 and 2013 (in thousands):



Derivatives Not Designated as Hedging Instruments	Amount of (Loss) Gain					Location of (Loss) Gain Recognized in Income on Derivative
	Three Months Ended March 31,
	2014			2013
Foreign currency contracts	$	(2,926	)	$	8,177	Other (income) expense, net

Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments

The following table shows the effect of the Company’s derivative instruments designated as cash flow and net investment hedging instruments in the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2014 and 2013 (in thousands):



	Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion)						Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion)	Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion)
	Three Months Ended March 31,							Three Months Ended March 31,
	2014			2013				2014			2013
Derivatives in Cash Flow Hedging Relationships:
Cross currency swap ⁽¹⁾	$	—		$	118		Other expense (income), net	$	—		$	(215	)
Foreign currency contracts	391			1,022			Cost of goods sold	(753		)	1,713
Interest rate swaps ⁽²⁾	69			(1,194		)	Interest expense	(69		)	—
Derivatives in Net Investment Hedging Relationships:
Foreign currency contracts	(375		)	1,985			N/A	—			—
Total	$	85		$	1,931			$	(822	)	$	1,498


(1)	Ten year swap executed in 2003.


(2)	Interest rate swaps were entered into as pre-issuance hedges for the $300 million bond offering.