Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 17: Fair Value Measurements

A financial instrument is defined as a cash equivalent, evidence of an ownership interest in an entity, or a contract that creates a contractual obligation or right to deliver or receive cash or another financial instrument from another party. The Company's financial instruments consist primarily of cash equivalents, trade receivables, trade payables, deferred compensation obligations and debt instruments. The book values of these instruments are a reasonable estimate of their respective fair values. In addition, the Company selectively uses derivative financial instruments, including foreign currency forward contracts and interest rate swaps, to manage the risks from fluctuations in foreign currency exchange rates and interest rates.

Fair value is defined under FASB ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under FASB ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value as follows:

Level 1	Quoted prices in active markets for identical assets or liabilities as of the reporting date.
Level 2	Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities as of the reporting date.
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table summarizes the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2011 and 2010.

	December 31, 2011
Financial Assets	Level 1		Level 2		Level 3		Total
Foreign currency forwards(1)	$	—		193		—		193
Trading securities held in deferred compensation plan(2)		6,269		—		—		6,269
Total	$	6,269		193		—		6,462
Financial Liabilities
Foreign currency forwards(1)	$	—		2,029		—		2,029
Interest rate swaps(3)		—		855		—		855
Phantom stock plan(4)		—		5,647		—		5,647
Deferred compensation plan(5)		6,269		—		—		6,269
Total	$	6,269		8,531		—		14,800

	December 31, 2010
Financial Assets	Level 1		Level 2		Level 3		Total
Foreign currency forwards(1)	$	—		709		—		709
Trading securities held in deferred compensation plan(2)		8,175		—		—		8,175
Total	$	8,175		709		—		8,884
Financial Liabilities
Foreign currency forwards(1)	$	—		1,884		—		1,884
Interest rate swaps(3)		—		1,560		—		1,560
Phantom stock plan(4)		—		5,043		—		5,043
Deferred compensation plan(5)		8,175		—		—		8,175
Total	$	8,175		8,487		—		16,662

(1) Based on internally-developed models that use as their basis readily observable market parameters such as current spot and forward rates, and the LIBOR index.

(2) Based on the observable price of publicly traded mutual funds which, in accordance with FASB ASC 710, Compensation — General, are classified as "Trading" securities and accounted for using the mark-to-market method.

(3) Measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curves as of December 31, 2011 and 2010, respectively. The present value calculation uses discount rates that have been adjusted to reflect the credit quality of the Company and its counterparties.

(4) Based on the price of the Company's common stock.

(5) Based on the fair value of the investments in the deferred compensation plan.

As discussed in Note 8 "Goodwill and Other Intangible Assets" and in accordance with the provisions of FASB ASC 350, the Company recorded impairment charges associated with goodwill and indefinite-lived intangible asset of $252.5 million and $9.9 million, respectively, during the year ended December 31, 2009. The goodwill and indefinite-lived intangible asset impairment charges were calculated as the amount by which the carrying value of each asset exceeded it's implied, in the case of goodwill, or estimated fair value. These fair values were determined using Level 3 inputs of the fair value hierarchy. No goodwill or intangible asset impairment charges were recorded during the years ended December 31, 2011 and 2010.