Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Carrying Amount And Estimated Fair Value Of Financial Instruments

The amounts recorded in the balance sheet (carrying amount) and the estimated fair values of financial instruments at June 30, 2012 and December 31, 2011 consisted of the following:

	June 30, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
(DOLLARS IN THOUSANDS)
Cash and cash equivalents (1)	$	104,637	$	104,637	$	88,279	$	88,279
Credit facilities and bank overdrafts (2)		129,887		129,887		158,971		158,971
Long-term debt: (3)
Senior notes - 2007		500,000		611,578		500,000		617,000
Senior notes - 2006		225,000		246,601		225,000		250,000

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:

(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 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 June 30, 2012 and December 31, 2011:

(DOLLARS IN THOUSANDS)	June 30, 2012		December 31, 2011
Forward currency contracts	$	133,902	$	147,078
Interest rate swaps	$	100,000	$	100,000

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 June 30, 2012 and December 31, 2011:

	June 30, 2012
(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	$	6,754		$	2,764		$	9,518
Interest rate swaps		409			—			409
	$	7,163		$	2,764		$	9,927
Derivative liabilities (b)
Foreign currency contracts	$	(1,730	)	$	(1,501	)	$	(3,231	)
	December 31, 2011
(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	$	9,333		$	5,473		$	14,806
Interest rate swaps		286			—			286
	$	9,619		$	5,473		$	15,092
Derivative liabilities (b)
Foreign currency contracts	$	(3,368	)	$	(2,054	)	$	(5,422	)

^(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 and six months ended June 30, 2012 and 2011 (in thousands):

Derivatives Not Designated as Hedging Instruments	Amount of (Loss) Gain Recognized in Income on Derivative					Location of (Loss) Gain Recognized in Income on Derivative
	For the three months ended June 30,
	2012		2011
Foreign currency contracts	$	5,564	$	(5,299	)	Other (income) expense, net
Derivatives Not Designated as Hedging Instruments	Amount of (Loss) Gain Recognized in Income on Derivative					Location of (Loss) Gain Recognized in Income on Derivative
	For the six months ended June 30,
	2012		2011
Foreign currency contracts	$	6,083	$	(14,850	)	Other 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 and six months ended June 30, 2012 and 2011 (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)
	For the three months ended June 30,						For the three months ended June 30,
	2012		2011				2012			2011
Derivatives in Cash Flow Hedging Relationships:
Cross currency swap (1)	$	271	$	93		Other (income) expense, net	$	(646	)	$	(562	)
Forward currency contracts		2,862		538		Cost of goods sold		1,187			(1,623	)
Derivatives in Net Investment Hedging Relationships:
Forward currency contracts		816		(962	)	N/A		—			—
Total	$	3,949	$	(331	)		$	541		$	(2,185	)
	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)
	For the six months ended June 30,						For the six months ended June 30,
	2012		2011				2012			2011
Derivatives in Cash Flow Hedging Relationships:
Cross currency swap (1)	$	1,033	$	670		Other (income) expense, net	$	(1,373	)	$	(1,087	)
Forward currency contracts		1,323		(2,126	)	Cost of goods sold		960			(2,620	)
Derivatives in Net Investment Hedging Relationships:
Forward currency contracts		313		(2,413	)	N/A		—			—
Total	$	2,669	$	(3,869	)		$	(413	)	$	(3,707	)

⁽¹⁾ Ten year swap executed in 2003