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FINANCIAL INSTRUMENTS AND DERIVATIVES (Tables)
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9 Months Ended |
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Sep. 30, 2013
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| Fair Value and Consolidated Balance Sheet Location of the Company's Derivatives |
The following tables summarize the fair value and consolidated balance sheet location of the Company’s derivatives at September 30, 2013 and December 31, 2012: | | | | | | | | | | | | | | | | | | | | September 30, 2013 | (in thousands) | | Prepaid Expenses and Other Current Assets | | Other Noncurrent Assets, Net | | Accrued Liabilities | | Other Noncurrent Liabilities | Designated as Hedges | | | | | | | | | | | | | | Foreign exchange forward contracts | | $ | 479 |
| | $ | 132 |
| | $ | 3,502 |
| | $ | 803 |
| Commodity contracts | | — |
| | — |
| | 472 |
| | 21 |
| Interest rate swaps | | 2,491 |
| | 551 |
| | 463 |
| | 402 |
| Cross currency basis swaps | | 489 |
| | — |
| | 47,604 |
| | 13,373 |
| Total | | $ | 3,459 |
| | $ | 683 |
| | $ | 52,041 |
| | $ | 14,599 |
| Not Designated as Hedges | | |
| | |
| | |
| | |
| | | | | | | | | | Foreign exchange forward contracts | | $ | 2,790 |
| | $ | — |
| | $ | 2,063 |
| | $ | — |
| DIO equity option contracts | | — |
| | — |
| | — |
| | 137 |
| Interest rate swaps | | — |
| | — |
| | 88 |
| | 285 |
| Cross currency basis swaps | | 1,797 |
| | — |
| | 4,743 |
| | 47,294 |
| Total | | $ | 4,587 |
| | $ | — |
| | $ | 6,894 |
| | $ | 47,716 |
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| | | | | | | | | | | | | | | | | | | | December 31, 2012 | (in thousands) | | Prepaid Expenses and Other Current Assets | | Other Noncurrent Assets, Net | | Accrued Liabilities | | Other Noncurrent Liabilities | Designated as Hedges | | | | | | | | | | | | | | Foreign exchange forward contracts | | $ | 2,353 |
| | $ | 65 |
| | $ | 2,243 |
| | $ | 844 |
| Commodity contracts | | — |
| | — |
| | 95 |
| | — |
| Interest rate swaps | | 2,192 |
| | 2,535 |
| | 525 |
| | 948 |
| Cross currency basis swaps | | 8,191 |
| | — |
| | 97,281 |
| | 1,588 |
| Total | | $ | 12,736 |
| | $ | 2,600 |
| | $ | 100,144 |
| | $ | 3,380 |
| Not Designated as Hedges | | |
| | |
| | |
| | |
| | | | | | | | | | Foreign exchange forward contracts | | $ | 6,652 |
| | $ | — |
| | $ | 1,353 |
| | $ | — |
| DIO equity option contracts | | — |
| | — |
| | — |
| | 153 |
| Interest rate swaps | | — |
| | — |
| | 114 |
| | 416 |
| Cross currency basis swaps | | 537 |
| | — |
| | 40,026 |
| | 55,858 |
| Total | | $ | 7,189 |
| | $ | — |
| | $ | 41,493 |
| | $ | 56,427 |
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| Offsetting Derivative Assets and Liabilities [Table Text Block] |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Amounts Not Offset in the Consolidated Balance Sheets | | | (in thousands) | | Gross Amounts Recognized | | Gross Amount Offset in the Consolidated Balance Sheets | | Net Amounts Presented in the Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Received/Pledged | | Net Amount | | | | | | | | | | | | | | Assets | | | | | | | | | | | | | Derivative contracts | | | | | | | | | | | | | Counterparty A | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Counterparty B | | 1,073 |
| | — |
| | 1,073 |
| | (1,073 | ) | | — |
| | — |
| Counterparty C | | 3,483 |
| | — |
| | 3,483 |
| | (3,483 | ) | | — |
| | — |
| Counterparty D | | 1,083 |
| | — |
| | 1,083 |
| | (1,083 | ) | | — |
| | — |
| Counterparty E | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Counterparty F | | 155 |
| | — |
| | 155 |
| | (155 | ) | | — |
| | — |
| Counterparty G | | 1,070 |
| | — |
| | 1,070 |
| | (1,070 | ) | | — |
| | — |
| Counterparty H | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| All Other | | 1,865 |
| | — |
| | 1,865 |
| | (472 | ) | | — |
| | 1,393 |
| Total Assets | | $ | 8,729 |
| | $ | — |
| | $ | 8,729 |
| | $ | (7,336 | ) | | $ | — |
| | $ | 1,393 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Amounts Not Offset in the Consolidated Balance Sheets | | | (in thousands) | | Gross Amounts Recognized | | Gross Amount Offset in the Consolidated Balance Sheets | | Net Amounts Presented in the Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Received/Pledged | | Net Amount | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | Derivative contracts | | | | | | | | | | | | | Counterparty A | | $ | 18,119 |
| | $ | — |
| | $ | 18,119 |
| | $ | — |
| | $ | — |
| | $ | 18,119 |
| Counterparty B | | 5,858 |
| | — |
| | 5,858 |
| | (1,073 | ) | | — |
| | 4,785 |
| Counterparty C | | 15,077 |
| | — |
| | 15,077 |
| | (3,483 | ) | | — |
| | 11,594 |
| Counterparty D | | 12,642 |
| | — |
| | 12,642 |
| | (1,083 | ) | | — |
| | 11,559 |
| Counterparty E | | 14,052 |
| | — |
| | 14,052 |
| | — |
| | — |
| | 14,052 |
| Counterparty F | | 35,989 |
| | — |
| | 35,989 |
| | (155 | ) | | — |
| | 35,834 |
| Counterparty G | | 2,792 |
| | — |
| | 2,792 |
| | (1,070 | ) | | — |
| | 1,722 |
| Counterparty H | | 9,044 |
| | — |
| | 9,044 |
| | — |
| | — |
| | 9,044 |
| All Other | | 7,677 |
| | — |
| | 7,677 |
| | (472 | ) | | — |
| | 7,205 |
| Total Liabilities | | $ | 121,250 |
| | $ | — |
| | $ | 121,250 |
| | $ | (7,336 | ) | | $ | — |
| | $ | 113,914 |
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Offsetting of financial assets and liabilities under netting arrangements at December 31, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Amounts Not Offset in the Consolidated Balance Sheets | | | (in thousands) | | Gross Amounts Recognized | | Gross Amount Offset in the Consolidated Balance Sheets | | Net Amounts Presented in the Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Received/Pledged | | Net Amount | | | | | | | | | | | | | | Assets | | | | | | | | | | | | | Derivative contracts | | | | | | | | | | | | | Counterparty A | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Counterparty B | | 2,110 |
| | — |
| | 2,110 |
| | (1,142 | ) | | — |
| | 968 |
| Counterparty C | | 9,682 |
| | — |
| | 9,682 |
| | (9,682 | ) | | — |
| | — |
| Counterparty D | | 1,618 |
| | — |
| | 1,618 |
| | (1,618 | ) | | — |
| | — |
| Counterparty E | | 1,579 |
| | — |
| | 1,579 |
| | (1,579 | ) | | — |
| | — |
| Counterparty F | | 183 |
| | — |
| | 183 |
| | (183 | ) | | — |
| | — |
| Counterparty G | | 2,843 |
| | — |
| | 2,843 |
| | (1,057 | ) | | — |
| | 1,786 |
| Counterparty H | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| All Other | | 4,510 |
| | — |
| | 4,510 |
| | (1,837 | ) | | — |
| | 2,673 |
| Total Assets | | $ | 22,525 |
| | $ | — |
| | $ | 22,525 |
| | $ | (17,098 | ) | | $ | — |
| | $ | 5,427 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Amounts Not Offset in the Consolidated Balance Sheets | | | (in thousands) | | Gross Amounts Recognized | | Gross Amount Offset in the Consolidated Balance Sheets | | Net Amounts Presented in the Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Received/Pledged | | Net Amount | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | Derivative contracts | | | | | | | | | | | | | Counterparty A | | $ | 40,176 |
| | $ | — |
| | $ | 40,176 |
| | $ | — |
| | $ | — |
| | $ | 40,176 |
| Counterparty B | | 1,142 |
| | — |
| | 1,142 |
| | (1,142 | ) | | — |
| | — |
| Counterparty C | | 38,019 |
| | — |
| | 38,019 |
| | (9,682 | ) | | — |
| | 28,337 |
| Counterparty D | | 10,432 |
| | — |
| | 10,432 |
| | (1,618 | ) | | — |
| | 8,814 |
| Counterparty E | | 17,802 |
| | — |
| | 17,802 |
| | (1,579 | ) | | — |
| | 16,223 |
| Counterparty F | | 84,260 |
| | — |
| | 84,260 |
| | (183 | ) | | — |
| | 84,077 |
| Counterparty G | | 1,057 |
| | — |
| | 1,057 |
| | (1,057 | ) | | — |
| | — |
| Counterparty H | | 7,378 |
| | — |
| | 7,378 |
| | — |
| | — |
| | 7,378 |
| All Other | | 1,178 |
| | — |
| | 1,178 |
| | (1,837 | ) | | — |
| | (659 | ) | Total Liabilities | | $ | 201,444 |
| | $ | — |
| | $ | 201,444 |
| | $ | (17,098 | ) | | $ | — |
| | $ | 184,346 |
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Cash Flow Hedging
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| Summary of Notional Amounts and Fair Value of the Company's Hedges |
The following tables summarize the notional amounts and fair value of the Company’s cash flow hedges and non-designated derivatives at September 30, 2013: | | | | | | | | | | | | | | | | | | Foreign Exchange Forward Contracts | | Notional Amounts Maturing in the Year | | Fair Value Net Asset (Liability) | (in thousands) | | 2013 | | 2014 | | 2015 | | September 30, 2013 | | | | | | | | | | Forward sale, 17.7 million Australian dollars | | $ | 10,854 |
| | $ | 5,356 |
| | $ | 778 |
| | $ | 477 |
| Forward purchase, 11.4 million British pounds | | (18,485 | ) | | — |
| | — |
| | 315 |
| Forward sale, 46.3 million Canadian dollars | | 14,891 |
| | 26,127 |
| | 3,923 |
| | 327 |
| Forward purchase, 23.2 million Danish kroner | | (4,204 | ) | | — |
| | — |
| | (4 | ) | Forward sale, 159.2 million euros | | 40,879 |
| | 149,922 |
| | 23,137 |
| | (2,513 | ) | Forward sale, 376.6 million Japanese yen | | 10,238 |
| | (6,417 | ) | | — |
| | (1,070 | ) | Forward sale, 177.5 million Mexican pesos | | 13,513 |
| | — |
| | — |
| | 194 |
| Forward purchase, 10.3 million Norwegian kroner | | (1,718 | ) | | — |
| | — |
| | (55 | ) | Forward sale, 17.6 million Polish zlotys | | 5,635 |
| | — |
| | — |
| | (39 | ) | Forward sale, 3.0 million Singapore dollars | | 2,385 |
| | — |
| | — |
| | 21 |
| Forward sale, 7.7 billion South Korean won | | 7,144 |
| | — |
| | — |
| | 66 |
| Forward purchase, 1.4 billion Swedish kronor | | (115,715 | ) | | (89,865 | ) | | (13,691 | ) | | (554 | ) | Forward purchase, 57.3 million Swiss francs | | (91,982 | ) | | 24,108 |
| | 3,444 |
| | (137 | ) | Forward sale, 10.0 million Taiwanese dollars | | 337 |
| | — |
| | — |
| | 5 |
| Total foreign exchange forward contracts | | $ | (126,228 | ) | | $ | 109,231 |
| | $ | 17,591 |
| | $ | (2,967 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | Interest Rate Swaps | | Notional Amounts Maturing in the Year | | Fair Value Net Asset (Liability) | (in thousands) | | 2013 | | 2014 | | 2015 | | 2016 | | 2017 and Beyond | | September 30, 2013 | | | | | | | | | | | | | | Euro | | $ | 319 |
| | $ | 977 |
| | $ | 977 |
| | $ | 977 |
| | $ | 1,221 |
| | $ | (373 | ) | Japanese yen | | — |
| | 127,793 |
| | — |
| | — |
| | — |
| | 217 |
| Swiss francs | | — |
| | — |
| | — |
| | 71,903 |
| | — |
| | (865 | ) | Total interest rate swaps | | $ | 319 |
| | $ | 128,770 |
| | $ | 977 |
| | $ | 72,880 |
| | $ | 1,221 |
| | $ | (1,021 | ) |
| | | | | | | | | | | | | | Commodity Swap Contracts | | Notional Amounts Maturing in the Year | | Fair Value Net Asset (Liability) | (in thousands) | | 2013 | | 2014 | | September 30, 2013 | | | | | | | | Silver swap - U.S. dollar | | $ | 615 |
| | $ | 1,279 |
| | $ | (396 | ) | Platinum swap - U.S. dollar | | 514 |
| | 1,074 |
| | (97 | ) | Total commodity swap contracts | | $ | 1,129 |
| | $ | 2,353 |
| | $ | (493 | ) |
| | | | | | | | | | | | | | | | | | Cross Currency Basis Swap | | Notional Amounts Maturing in the Year | Fair Value Net Asset (Liability) | (in thousands) | | 2013 | | 2014 | | 2015 and Beyond | | September 30, 2013 | | | | | | | | | | 449.8 million euro at $1.45 pay U.S. dollar three-month LIBOR receive three-month EURIBOR | | $ | — |
| | $ | 608,697 |
| | $ | — |
| | $ | (43,752 | ) | 84.0 million euro at $1.34 pay three-month EURIBOR receive U.S. dollar three-month LIBOR | | 113,627 |
| | — |
| | — |
| | (1,129 | ) | 166.4 million Swiss franc at 0.93 pay Swiss franc three-month LIBOR receive U.S. dollar three-month LIBOR | | 27,655 |
| | 110,619 |
| | 45,780 |
| | (5,359 | ) | Total cross currency basis swap | | $ | 141,282 |
| | $ | 719,316 |
| | $ | 45,780 |
| | $ | (50,240 | ) |
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| Fair Value and Consolidated Balance Sheet Location of the Company's Derivatives |
The following tables summarize the statements of operations impact of the Company’s cash flow hedges for the three and nine months ended September 30, 2013 and 2012: | | | | | | | | | | | | Three Months Ended September 30, 2013 | | | | | | | Derivatives in Cash Flow Hedging | | | | | | | (in thousands) | | Gain (Loss) in AOCI | | Classification of Gains (Losses) | | Effective Portion Reclassified from AOCI into Income | | | | | | | | Interest rate swaps | | $ | (414 | ) | | Interest expense | | $ | (924 | ) | Foreign exchange forward contracts | | (2,488 | ) | | Cost of products sold | | 460 |
| Foreign exchange forward contracts | | (273 | ) | | SG&A expenses | | (27 | ) | Commodity contracts | | 457 |
| | Cost of products sold | | (190 | ) | Total | | $ | (2,718 | ) | | | | $ | (681 | ) |
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| Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance |
The following tables summarize the statements of operations impact of the Company’s hedges of net investments for the three and nine months ended September 30, 2013 and 2012: | | | | | | | | | | | | Three Months Ended September 30, 2013 | Derivatives in Net Investment Hedging | | | | | | | (in thousands) | | Gain (Loss) in AOCI | | Classification of Gains (Losses) | | Gain (Loss) Recognized in Income | | | | | | | | Cross currency basis swaps | | $ | (49,614 | ) | | Interest income | | $ | 1,331 |
| | | | | Interest expense | | 755 |
| Total | | $ | (49,614 | ) | | | | $ | 2,086 |
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Net Investment Hedging [Member]
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| Summary of Notional Amounts and Fair Value of the Company's Hedges |
The following tables summarize the notional amounts and fair value of the Company’s cross currency basis swaps that are designated as hedges of net investments in foreign operations at September 30, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | Cross Currency Basis Swaps | | Notional Amounts Maturing in the Year | | Fair Value Net Asset (Liability) | (in thousands) | | 2013 | | 2014 | | 2015 | | 2016 | | 2017 and Beyond | | September 30, 2013 | | | | | | | | | | | | | | 432.5 million Swiss franc at 0.93 pay Swiss franc three-month LIBOR receive U.S. dollar three-month LIBOR | | $ | — |
| | $ | 88,938 |
| | $ | 62,611 |
| | $ | 110,619 |
| | $ | 216,261 |
| | $ | (12,891 | ) | 534.0 million euro at $1.26 pay three-month EURIBOR receive U.S. dollar three-month LIBOR | | 722,342 |
| | — |
| | — |
| | — |
| | — |
| | (47,597 | ) | Total cross currency basis swaps | | $ | 722,342 |
| | $ | 88,938 |
| | $ | 62,611 |
| | $ | 110,619 |
| | $ | 216,261 |
| | $ | (60,488 | ) |
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Fair Value Hedging
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|
| Summary of Notional Amounts and Fair Value of the Company's Hedges |
The following tables summarize the statements of operations impact of the Company’s hedges of fair value for the three and nine months ended September 30, 2013 and 2012: | | | | | | | | | | | | | | | | | | | | Derivatives in Fair Value Hedging | | | | | | | | | | | | | Classification | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | (in thousands) | | of Gains (Losses) | | 2013 | | 2012 | | 2013 | | 2012 | | | | | | | | | | | | Interest rate swaps | | Interest expense | | $ | 251 |
| | $ | 789 |
| | $ | 163 |
| | $ | 2,274 |
| Total | | | | $ | 251 |
| | $ | 789 |
| | $ | 163 |
| | $ | 2,274 |
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The following tables summarize the notional amounts and fair value of the Company’s fair value hedges at September 30, 2013: | | | | | | | | | | | | | | | | | | Interest Rate Swap | | Notional Amounts Maturing in the Year | | Fair Value Net Asset (Liability) | (in thousands) | | 2014 | | 2015 | | 2016 | | September 30, 2013 | | | | | | | | | | U.S. dollar | | $ | 45,000 |
| | $ | 60,000 |
| | $ | 45,000 |
| | $ | 2,825 |
| Total interest rate swap | | $ | 45,000 |
| | $ | 60,000 |
| | $ | 45,000 |
| | $ | 2,825 |
|
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Not Designated as Hedging Instrument [Member]
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| Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance |
The following table summarizes the statements of operations impact of the Company’s hedges not designated as hedging for the three and nine months ended September 30, 2013 and 2012: | | | | | | | | | | | | | | | | | | | | Derivatives Not Designated as Hedging | | | Classification | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | (in thousands) | | of Gains (Losses) | | 2013 | | 2012 | | 2013 | | 2012 | | | | | | | | | | | | Foreign exchange forward contracts (a) | | Other expense (income), net | | $ | 3,110 |
| | $ | (5,033 | ) | | $ | 6,193 |
| | $ | (4,727 | ) | DIO equity option contracts | | Other expense (income), net | | 8 |
| | 406 |
| | 20 |
| | 229 |
| Interest rate swaps | | Interest expense | | (7 | ) | | (49 | ) | | 14 |
| | (136 | ) | Cross currency basis swaps (a) | | Other expense (income), net | | 10,625 |
| | 8,275 |
| | 9,250 |
| | (3,841 | ) | Total | | | | $ | 13,736 |
| | $ | 3,599 |
| | $ | 15,477 |
| | $ | (8,475 | ) |
|