Fair Value

6 Months Ended

Jul. 02, 2011

Fair Value

Fair Value

15. FAIR VALUE

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy:

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 following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of July 2, 2011 and January 1, 2011 (in millions):

	July 2, 2011		January 1, 2011
Assets:
Investments — Trading Securities	$	—	$	56.3	(Level 2)
Prepaid Expenses and Other Current Assets:
Derivative Currency Contracts		9.4		7.3	(Level 2)
Derivative Commodity Contracts		14.7		24.9	(Level 2)
Other Noncurrent Assets:
Derivative Currency Contracts		2.6		1.4	(Level 2)
Derivative Commodity Contracts		0.2		4.2	(Level 2)
Liabilities:
Other Accrued Expenses:
Derivative Currency Contracts		0.7		0.1	(Level 2)
Derivative Commodity Contracts		0.1		0.1	(Level 2)
Hedging Obligations:
Interest Rate Swap		38.4		39.1	(Level 2)
Derivative Currency Contracts		—		0.1	(Level 2)
Other Noncurrent Liabilites:
Deferred Contingent Purchase Price		25.9		11.0	(Level 3)

The table below sets forth a summary of changes in fair market value of the Company's Level 3 Other Noncurrent Liabilities for the three and six months ended July 2, 2011. There were no such Other Noncurrent Liabilities for the three and six months ended July 3, 2010 (in millions):

	Three Months Ended		Six Months Ended
	July 2, 2011		July 2, 2011
Beginning Balance	$	9.2	$	11.0
Valuation adjustments		—		(1.8	)
Acquisitions		16.7		16.7
Ending balance	$	25.9	$	25.9

The Other Noncurrent Liabilities described above are comprised entirely of the Deferred Contingent Purchase Price of two of the Company's acquisitions as discussed in Note 3, and are measured using Level 3 inputs. The fair value was determined using valuation techniques, including discounted cash flows, comparable transactions, and/or comparable company analyses.