Fair Value Disclosures

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Disclosures

Recurring Fair Value Measurements

The following tables present the Company’s non-pension financial assets and liabilities which are measured at fair value on a recurring basis (in millions):

Description	Fair Value as of September 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant     Unobservable     Inputs (Level 3)
Assets
Investment securities, including mutual funds (1)	$	10.8	$	8.0	$	2.8	$	—
Interest rate swaps (2)	41.3		—		41.3		—
Forward interest rate swaps (2)	1.0		—		1.0		—
Foreign currency derivatives (2)	0.4		—		0.4		—
Total	$	53.5	$	8.0	$	45.5	$	—
Liabilities
Forward interest rate swaps (2)	$	0.7	$	—	$	0.7	$	—
Foreign currency derivatives (2)	0.8		—		0.8		—
Commodity swap (2)	1.7		—		1.7		—
Total	$	3.2	$	—	$	3.2	$	—
Description	Fair Value as of December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Investment securities, including mutual funds (1)	$	17.7	$	7.3	$	10.4	$	—
Interest rate swaps (2)	35.8		—		35.8		—
Foreign currency derivatives (2)	2.4		—		2.4		—
Total	$	55.9	$	7.3	$	48.6	$	—

(1) The values of investment securities, including mutual funds, are classified as cash and cash equivalents ($0.4 million and $5.1 million as of September 30, 2012 and December 31, 2011, respectively) and other assets ($10.4 million and $12.6 million as of September 30, 2012 and December 31, 2011, respectively). For mutual funds that are publicly traded, fair value is determined on the basis of quoted market prices and, accordingly, these investments have been classified as Level 1. Other investment securities are valued at the net asset value per share or unit multiplied by the number of shares or units held as of the measurement date and have been classified as Level 2.

(2) The fair values of the Company's derivative instruments are based on valuation models using observable market inputs and as such have been classified as Level 2.

Non-recurring Fair Value Measurements

The Company’s nonfinancial assets which are measured at fair value on a nonrecurring basis include property, plant and equipment, goodwill, intangible assets and certain other assets.

During the three months ended September 30, 2012, the Company performed the annual impairment tests of goodwill and indefinite-lived intangible assets and concluded that no impairment charges were necessary. In making the assessment of goodwill and indefinite-lived intangible assets impairment, management relies on a number of factors including operating results, business plans, economic projections, anticipated future cash flows, transactions, and market place data. Accordingly, these fair value measurements fall in the Level 3 category of the fair value hierarchy. The factors used by management in the impairment analysis are inherently subject to uncertainty. While the Company believes it has made reasonable estimates and assumptions to determine the fair value of its reporting units, if actual results are not consistent with management's estimates and assumptions, goodwill and other intangible assets may be overstated and could potentially trigger additional impairment charges.

During the nine months ended September 30, 2012, impairments associated with plans to dispose of certain property, plant and equipment were not material. The Company generally uses projected cash flows, discounted as necessary, to estimate the fair values of the impaired assets using key inputs such as management’s projections of cash flows on a held-and-used basis (if applicable), management’s projections of cash flows upon disposition and discount rates. Accordingly, these fair value measurements fall in the Level 3 category of the fair value hierarchy. These assets and certain liabilities are measured at fair value on a nonrecurring basis as part of the Company’s impairment assessments and as circumstances require.

Financial Instruments

The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, derivative instruments, notes payable and short and long-term debt. The carrying values for current financial assets and liabilities, including cash and cash equivalents, accounts receivable and accounts payable, approximate fair value due to the short maturity of such instruments. The fair values of the Company’s derivative instruments are recorded in the Condensed Consolidated Balance Sheets and are disclosed in Footnote 7.

The fair values of certain of the Company’s long-term debt are based on quoted market prices (Level 1) and are as follows (in millions):

	September 30, 2012				December 31, 2011
	Fair Value		Book Value		Fair Value		Book Value
Medium-term notes	$	1,953.8	$	1,869.2	$	1,679.7	$	1,632.3
Preferred securities underlying the junior convertible subordinated debentures	—		—		356.0		421.2

The carrying amounts of all other significant debt approximate fair value.