Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

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 June 30, 2013 and December 31, 2012 consisted of the following:


	June 30, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
(DOLLARS IN THOUSANDS)
Cash and cash equivalents ⁽¹⁾	$	365,897	$	365,897	$	324,422	$	324,422
Credit facilities and bank overdrafts ⁽²⁾		175		175		297,147		297,147
Long-term debt: ⁽³⁾
Senior notes - 2007		500,000		597,827		500,000		634,000
Senior notes - 2006		225,000		241,583		225,000		248,000
Senior notes - 2013		299,736		282,884		—		—

(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 June 30, 2013 and December 31, 2012:


(DOLLARS IN THOUSANDS)	June 30, 2013		December 31, 2012
Foreign currency contracts	$	189,550	$	143,483
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, 2013 and December 31, 2012:


	June 30, 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	$	3,728	$	3,961	$	7,689
Interest rate swaps		25		—		25

	$	3,753	$	3,961	$	7,714

Derivative liabilities ^(b)
Foreign currency contracts	$	1,049	$	1,435	$	2,484


	December 31, 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	$	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

^(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, 2013 and 2012 (in thousands):


Derivatives Not Designated as Hedging Instruments	Amount of (Loss) Gain For the Three Months Ended June 30,				Location of (Loss) Gain Recognized in Income on Derivative
	2013		2012

Foreign currency contracts	$	4,330	$	5,564	Other income, net

Derivatives Not Designated as Hedging Instruments	Amount of (Loss) Gain Recognized in Income on Derivative For the six months ended June 30,				Location of (Loss) Gain Recognized in Income on Derivative
	2013		2012

Foreign currency contracts	$	12,507	$	6,083	Other income, 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, 2013 and 2012 (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,
	2013			2012			2013			2012

Derivatives in Cash Flow Hedging Relationships:

Cross currency swap ⁽¹⁾	$	—		$	271	Other income, net	$	(118	)	$	(646	)
Foreign currency contracts		(702	)		2,862	Cost of goods sold		(151	)		1,187
Interest rate swaps ⁽²⁾		(1,473	)		—	Interest expense		(68	)		—

Derivatives in Net Investment Hedging Relationships:

Foreign currency contracts		(343	)		816	N/A		—			—

Total	$	(2,518	)	$	3,949		$	(337	)	$	541


	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,
	2013			2012			2013			2012

Derivatives in Cash Flow Hedging Relationships:

Cross currency swap ⁽¹⁾	$	—		$	1,033	Other income, net	$	(333	)	$	(1,373	)
Foreign currency contracts		320			1,323	Cost of goods sold		1,562			960
Interest rate swaps ⁽²⁾		(2,667	)		—	Interest expense		(68	)		—

Derivatives in Net Investment Hedging Relationships:

Foreign currency contracts		1,642			313	N/A		—			—

Total	$	(705	)	$	2,669		$	1,161		$	(413	)

⁽¹⁾	Ten year swap executed in 2003.

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

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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