Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

8. FAIR VALUE MEASUREMENTS

Assets and liabilities are required to be categorized into three levels of fair value based upon the assumptions used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing the fair value measurement of assets and liabilities are as follows:

— Level 1: Fair valuing the asset or liability using observable inputs, such as quoted prices in active markets for identical assets or liabilities;

— Level 2: Fair valuing the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and

— Level 3: Fair valuing the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability.

As of June 30, 2012, the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value, namely its foreign currency forward exchange contracts (“FX Contracts”), are categorized in the table below:

	Total		Level 1		Level 2		Level 3
Assets:
Derivatives:
FX Contracts (a)	$	-	$	-	$	-	$	-
Total assets at fair value	$	-	$	-	$	-	$	-
Liabilities:
Derivatives:
FX Contracts (a)	$	0.8	$	-	$	0.8	$	-
Total liabilities at fair value	$	0.8	$	-	$	0.8	$	-

As of December 31, 2011, the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value, namely its FX Contracts, are categorized in the table below:

	Total		Level 1		Level 2		Level 3
Assets
Derivatives:
FX Contracts (a)	$	0.2	$	-	$	0.2	$	-
Total assets at fair value	$	0.2	$	-	$	0.2	$	-
Liabilities
Derivatives:
FX Contracts (a)	$	0.8	$	-	$	0.8	$	-
Total liabilities at fair value	$	0.8	$	-	$	0.8	$	-

^(a) The fair value of the Company’s FX Contracts was measured based on observable market transactions of spot and forward rates at June 30, 2012 and December 31, 2011. (See Note 9, “Financial Instruments,” in this Form 10-Q.)

As of June 30, 2012, the fair values of the Company’s financial liabilities not measured at fair value but for which disclosure of fair value is required, namely its long-term debt, including the current portion of long-term debt, are categorized in the table below:

	Total		Level 1		Level 2		Level 3
Liabilities:
Long-term debt, including current portion	$	1,246.4	$	-	$	1,246.4	$	-
Total liabilities at fair value	$	1,246.4	$	-	$	1,246.4	$	-

The fair value of the Company’s long-term debt, including the current portion of long-term debt is based on the quoted market prices for the same issues or on the current rates offered for debt of similar remaining maturities. The estimated fair value of such debt at June 30, 2012 was approximately $1,246.4 million, which was more than the carrying value of such debt at June 30, 2012 of $1,218.9 million. The estimated fair value of such debt at December 31, 2011 was approximately $1,240.4 million, which was more than the carrying value of such debt at December 31, 2011 of $1,222.0 million.

The carrying amounts of cash and cash equivalents, marketable securities, trade receivables, notes receivable, accounts payable and short-term borrowings approximate their fair values.