Fair Value Disclosure

9 Months Ended

Sep. 26, 2014

The fair market values of the Company’s financial instruments are determined based on the fair value hierarchy as discussed in ASC 820 - Fair Value Measurements.

The Company carries derivative assets and liabilities (Level 2) and marketable equity securities (Level 1) held in the rabbi trust as part of the Company’s Deferred Compensation Plan at fair value. The fair values of derivative assets and liabilities traded in the over-the-counter market are determined using quantitative models that require the use of multiple market inputs including interest rates, prices and indices to generate pricing and volatility factors, which are used to value the position. The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Marketable equity securities are recorded at fair value, which are based on quoted market prices.

Financial assets and liabilities measured at fair value on a recurring basis are summarized below (in millions).



	Fair Value Measurement
	September 26, 2014								December 31, 2013
	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets:
Derivative assets	$	—	$	5.4	$	—	$	5.4	$	—	$	7.2	$	—	$	7.2
Equity securities	21.7		—		—		21.7		22.2		—		—		22.2
Total assets	$	21.7	$	5.4	$	—	$	27.1	$	22.2	$	7.2	$	—	$	29.4
Liabilities:
Derivative liabilities	$	—	$	5.9	$	—	$	5.9	$	—	$	9.3	$	—	$	9.3
Total liabilities	$	—	$	5.9	$	—	$	5.9	$	—	$	9.3	$	—	$	9.3

At September 26, 2014, there were no material financial assets or financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

In the three and nine months ended September 26, 2014, the Company recorded asset-related charges of $85.8 million and $109.2 million, as part of the global restructuring plan, respectively, and a long-lived asset impairment charge of $13.1 million related to the Brazil rod mill. To determine the fair value, the Company considered appraisals, including discounted cash flows expected to result from the use and eventual disposition of the assets, utilizing standard valuation approaches, which incorporate Level 3 inputs. To determine the fair value of the asset groups, the Company employed both income and market-based approaches. The non-financial assets measured at fair value which include the land, buildings and machinery and equipment at certain asset groups, are fair valued at $81.8 million at September 26, 2014.

Similarly, there were no other nonfinancial assets or nonfinancial liabilities measured at fair value on a non-recurring basis.