Financial Instruments (Tables)

12 Months Ended

Dec. 31, 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 December 31 consisted of the following:

	2012				2011
(DOLLARS IN THOUSANDS)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents (1)	$	324,422	$	324,422	$	88,279	$	88,279
Credit facilities and bank overdrafts (2)		297,147		297,147		158,971		158,971
Long-term debt: (3)
Senior notes - 2007		500,000		634,000		500,000		617,000
Senior notes - 2006		225,000		248,000		225,000		250,000

⁽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 December 31, 2012 and December 31, 2011:

(DOLLARS IN THOUSANDS)	December 31, 2012		December 31, 2011
Forward currency contracts	$	143,483	$	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 December 31, 2012 and December 31, 2011 (in thousands):

	December 31, 2012
	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	$	676		$	2,535		$	3,211
Interest rate swaps		328			—			328
	$	1,004		$	2,535		$	3,539
Derivative liabilities(b)
Foreign currency contracts	$	5,251		$	278		$	5,529
	December 31, 2011
	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 Income and Comprehensive Income for the years ended December 31, 2012 and December 31, 2011 (in thousands):

Derivatives Not Designated as Hedging Instruments under ASC 815	Amount of Gain or (Loss) For the years ended December 31,					Location of Gain or (Loss) Recognized in Income on Derivative
	2012		2011
Foreign currency contract	$	17,847	$	(2,451	)		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 Statement of Income and Comprehensive Income for the years ended December 31, 2012 and December 31, 2011 (in thousands):

	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)					Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
	For the years ended December 31,							For the years ended December 31,
	2012			2011				2012			2011
Derivatives in Cash Flow Hedging Relationships:
Cross currency swap(1)	$	1,975		$	1,206		Other expense, net	$	(2,787	)	$	(2,467	)
Forward currency contract		(6,523	)		7,179		Other expense, net		4,206			(5,156	)
Derivatives in Net Investment Hedging Relationships:
Forward currency contract		(395	)		265		N/A		—			—
Total	$	(4,943	)	$	8,650			$	1,419		$	(7,623	)

(1) Ten year swap executed in 2003.