Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments in the Balance Sheet

Following is a summary of the Company's financial instruments which have been valued at fair value in the Company's Consolidated Balance Sheets at September 30, 2012 and December 31, 2011:

	Fair Value Based on Quoted Prices in Active Markets for Identical Assets (Level 1)				Fair Value Based on Significant Other Observable Inputs (Level 2)						Fair Value Based on Significant Unobservable Inputs (Level 3)				Total
($ in millions)	2012		2011		2012			2011			2012		2011		2012			2011
Cash and cash equivalents:
Cash	$	410.6	$	491.7	$	–		$	–		$	–	$	–	$	410.6		$	491.7
Money market funds		420.5		133.4		–			–			–		–		420.5			133.4
Certificate of deposit		0.2		‒		–			–			–		–		0.2			–
Commercial paper		–		–		91.0			140.4			–		–		91.0			140.4
U.S.non-governmental agency asset-backed securities		–		–		27.7			27.8			–		–		27.7			27.8
U.S. corporate obligations		5.6		29.1		–			–			–		–		5.6			29.1
U.S. Treasury securities		1.4		–		–			–			–				1.4			–
Non-U.S. bank and other obligations		33.7		76.5		–			–			–		–		33.7			76.5
Short-term investments:
Commercial paper		–		–		211.0			213.5			–		–		211.0			213.5
U.S. Treasury securities		–		10.1		–			–			–		–		–			10.1
U.S. non-governmental agency asset-backed securities		–		–		68.7			77.3			–		–		68.7			77.3
U.S. corporate obligations		84.4		122.6		–			–			–		–		84.4			122.6
Derivatives, net asset (liability):
Foreign currency contracts		–		–		(0.1	)		(13.8	)		–		–		(0.1	)		(13.8	)
Interest rate contracts		–		–		–			1.4			–		–		–			1.4
	$	956.4	$	863.4	$	398.3		$	446.6		$	–	$	–	$	1,354.7		$	1,310.0

Information Relating to the Contracts and Estimated Fair Values Recorded in the Company's Consolidated Balance Sheets

Total gross volume bought (sold) by notional currency and maturity date on open derivative contracts at September 30, 2012 was as follows (in millions):

	Notional Amount - Buy								Notional Amount - Sell
	2012		2013		2014		Total		2012			2013			2014			2015			Total
FX Forward Contracts
Notional currency in:
EUR		83.7		65.3		17.8		166.8		(25.0	)		(7.8	)		–			–			(32.8	)
GBP		34.0		1.1		0.1		35.2		(33.1	)		(7.2	)		(0.3	)		–			(40.6	)
NOK		458.4		1,016.6		156.2		1,631.2		(140.7	)		(394.5	)		(0.4	)		–			(535.6	)
SGD		–		10.0		–		10.0		–			–			–			–			–
USD		17.8		27.3		0.2		45.3		(41.8	)		(113.6	)		(0.5	)		(0.5	)		(156.4	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair values of derivative financial instruments recorded in the Company's Consolidated Condensed Balance Sheets at September 30, 2012 and December 31, 2011 were as follows (in millions):

	September 30, 2012				December 31, 2011
	Assets		Liabilities		Assets		Liabilities
Derivatives designated as hedges:
Foreign exchange contracts –
Current	$	9.7	$	6.4	$	1.9	$	7.0
Non-current		0.9		2.1		–		0.6
Total derivatives designated as hedges		10.6		8.5		1.9		7.6
Derivatives not designated as hedges:
Foreign exchange contracts –
Current		1.6		3.8		2.5		10.6
Non-current		–		–		–		–
Interest Rate Swaps –
Current		–		–		1.4		–
Non-current		–		–		–		–
Total derivatives not designated as hedges		1.6		3.8		3.9		10.6
Total derivatives	$	12.2	$	12.3	$	5.8	$	18.2

Schedule of Derivative Instruments in Cash Flow Hedges, Gain (Loss) in Statement of Financial Performance

The effects of derivative financial instruments designated as cash flow hedges on the Company's consolidated condensed financial statements for the three months ended September 30, 2012 and 2011 were as follows (in millions):

	Effective Portion												Ineffective Portion and Other
Derivatives in Cash Flow Hedging Relationships	Amount of Pre-Tax Gain (Loss) Recognized in OCI on Derivatives at September 30,					Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income at September 30,						Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives at September 30,
	2012		2011				2012			2011				2012		2011
Foreign exchange contracts	$	4.6	$	(7.1	)	Revenues	$	(3.5	)	$	0.6		Cost of goods sold-ineffectiveportion	$	–	$	(0.3	)
						Cost of goods sold		–			(1.7	)
						Depreciation expense		–			–
Total	$	4.6	$	(7.1	)		$	(3.5	)	$	(1.1	)		$	–	$	(0.3	)

The effects of derivative financial instruments designated as cash flow hedges on the Company's consolidated condensed financial statements for the nine months ended September 30, 2012 and 2011 were as follows (in millions):

	Effective Portion												Ineffective Portion and Other
Derivatives in Cash Flow Hedging Relationships	Amount of Pre-Tax Gain (Loss) Recognized in OCI on Derivatives at September 30,					Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income at September 30,						Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives at September 30,
	2012		2011				2012			2011				2012			2011
Foreign exchange contracts	$	0.2	$	(4.2	)	Revenues	$	(5.5	)	$	2.5		Cost of goods sold-ineffectiveportion	$	(0.5	)	$	(0.7	)
						Cost of goods sold		(4.8	)		(8.2	)
						Depreciation expense		(0.1	)		(0.1	)
Total	$	0.2	$	(4.2	)		$	(10.4	)	$	(5.8	)		$	(0.5	)	$	(0.7	)

Amount of Gain (Loss) Recognized on Derivatives not Designated as Hedging Instruments

The amount of pre-tax gain (loss) from the ineffective portion of derivatives not designated as hedging instruments was (in millions):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012		2011
Foreign currency contracts:
Cost of sales	$	–	$	(1.4	)	$	0.5	$	(2.2	)
Other costs		7.6		(6.4	)		13.2		(6.4	)
Interest rate swaps:
Interest, net		–		–			–		(0.2	)
Equity call options:
Other costs		–		(13.8	)		–		(12.2	)
Total	$	7.6	$	(21.6	)	$	13.7	$	(21.0	)