Fair Value

3 Months Ended

Mar. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value

FAIR VALUE

The Company uses a three-tier hierarchy to assess the inputs used to measure the fair value of financial assets and liabilities.

Level 1	Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2	Unadjusted quoted prices in active markets for similar assets or liabilities, or
	Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or
	Inputs other than quoted prices that are observable for the asset or liability
Level 3	Unobservable inputs for the asset or liability

The Company uses the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The fair value of the Company's cash equivalents, term deposits, accounts receivable and accounts payable approximated book value as of March 30, 2013 and December 29, 2012, respectively, due to their short-term nature. See Note 7 of Notes to Condensed Consolidated Financial Statements for disclosure of the approximate fair value of the Company's debt at March 30, 2013 and December 29, 2012.

The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 30, 2013 and December 29, 2012 (in millions):

	March 30, 2013		December 29, 2012		Classification
Assets:
Prepaid Expenses and Other Current Assets:
Derivative Currency Contracts	$	13.8	$	6.8	Level 2
Derivative Commodity Contracts	1.0		4.2		Level 2
Investments	—		—		Level 2
Other Noncurrent Assets:
Assets Held in Rabbi Trust	2.6		2.6		Level 1
Derivative Currency Contracts	3.9		2.3		Level 2
Derivative Commodity Contracts	—		0.2		Level 2
Liabilities:
Other Accrued Expenses:
Deferred Contingent Purchase Price	7.7		—		Level 3
Hedging Obligations Current:
Derivative Currency Contracts	2.2		4.6		Level 2
Derivative Commodity Contracts	6.9		1.7		Level 2
Hedging Obligations:
Interest Rate Swap	32.0		35.4		Level 2
Derivative Currency Contracts	0.2		0.3		Level 2
Other Noncurrent Liabilities:
Deferred Contingent Purchase Price	13.7		21.1		Level 3

The Company’s derivative contracts are valued at fair value using the market or income approaches. The Company measures the fair value of foreign exchange contracts using Level 2 inputs based on observable spot and forward rates in active markets. The Company measures the fair value of commodity contracts using Level 2 inputs through observable market transactions in active markets provided by financial institutions. The Company measures the fair value of interest rate swaps using Level 2 inputs in an income approach for valuation based on expected interest rate yield curves over the remaining duration of the interest rate swaps. During the three months endedMarch 30, 2013, there were no transfers between classification Levels 1, 2 or 3.

The table below sets forth a summary of changes in fair market value of the Company’s Level 3 liabilities for the three months endedMarch 30, 2013 and March 31, 2012 (in millions):

	Three Months Ended
	March 30, 2013		March 31, 2012
Beginning Balance	$	21.1	$	23.5
Valuation Adjustments	0.3		0.3
Ending Balance	$	21.4	$	23.8

The Level 3 liabilities described above are comprised entirely of the deferred contingent purchase price of the Company’s acquisitions and are measured using Level 3 inputs. The contingent consideration, payable in cash, is based upon sales or earnings before interest and income taxes for the acquired businesses for the applicable contingency period. The fair value of the contingent consideration is a Level 3 input; the measurement of which is derived using a probability weighted discounted cash flow analysis. The Company has estimated that the maximum contingent amount will be paid under all agreements so the key assumption is the estimated timing of the payments and the discount rates. The discounted cash flow utilized risk-based discount rates ranging from approximately 5.0% to 8.0%.