Derivatives and Financial Instruments (Tables)

9 Months Ended

Sep. 29, 2012

Assets and Liabilities Measured at Fair Value

Financial assets and liabilities measured at fair value on a recurring basis were as follows:

Recurring fair value measurements	As of September 29, 2012
In thousands	Total			(Level 1)		(Level 2)			(Level 3)
Cash-flow hedges	$	(3,599	)	$	—	$	(3,599	)	$	—
Foreign currency contracts (3)		1,827			—		1,827			—
Deferred compensation plan (1) (3)		54,856			54,856		—			—
Total recurring fair value measurements	$	53,084		$	54,856	$	(1,772	)	$	—
Recurring fair value measurements	As of December 31, 2011
In thousands	Total			(Level 1)		(Level 2)			(Level 3)
Cash-flow hedges	$	(8,034	)	$	—	$	(8,034	)	$	—
Foreign currency contracts		(99	)		—		(99	)		—
Deferred compensation plan (1)		22,987			22,987		—			—
Total recurring fair value measurements	$	14,854		$	22,987	$	(8,133	)	$	—
Nonrecurring fair value measurements
Goodwill (2)	$	242,800		$	—	$	—		$	242,800
Recurring fair value measurements	As of October 1, 2011
In thousands	Total			(Level 1)		(Level 2)			(Level 3)
Cash-flow hedges	$	(10,504	)	$	—	$	(10,504	)	$	—
Deferred compensation plan (1)		21,684			21,684		—			—
Total recurring fair value measurements	$	11,180		$	21,684	$	(10,504	)	$	—

(1) Deferred compensation plan assets include mutual funds and cash equivalents for payment of certain non-qualified benefits for retired, terminated and active employees. The fair value of these assets was based on quoted market prices in active markets.

(2) In the fourth quarter of 2011, we completed our annual goodwill impairment review. As a result, we recorded a pre-tax non-cash goodwill impairment charge of $200.5 million in our Residential Filtration reporting unit. The fair value of each reporting unit is determined using a discounted cash flow analysis and market approach. Projecting discounted future cash flows requires us to make significant estimates regarding future revenues and expenses, projected capital expenditures, changes in working capital and the appropriate discount rate. Use of the market approach consists of comparisons to comparable publicly-traded companies that are similar in size and industry. Actual results may differ from those used in our valuations. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation.

(3) Includes a foreign currency contract valued at $0.3 million and deferred compensation plan assets valued on a preliminary basis at $27.2 million acquired in the Merger.