The company uses the market approach technique to value its financial instruments and there were no changes in valuation techniques during 2011. The company's financial assets and liabilities carried at fair value are primarily comprised of investments in money market funds, mutual funds holding publicly traded securities, derivative contracts used to hedge the company's currency and interest rate risks and other investments in unit trusts and insurance contracts held as assets to satisfy outstanding retirement liabilities.

The fair value accounting guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities that the company has the ability to access.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data such as quoted prices, interest rates and yield curves.

Level 3: Inputs are unobservable data points that are not corroborated by market data.

The following table presents information about the company's financial assets and liabilities measured at fair value on a recurring basis as of July 2, 2011:

			July 2,			Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In millions)				2011		(Level 1)		(Level 2)		(Level 3)

Assets
	Cash equivalents			$	611.1	$	611.1	$	—	$	—
	Investments in mutual funds, unit trusts and other similar instruments				37.6		37.6		—		—
	Insurance contracts				48.9		—		48.9		—
	Auction rate securities				4.4		—		—		4.4
	Derivative contracts				92.0		—		92.0		—

		Total Assets		$	794.0	$	648.7	$	140.9	$	4.4

Liabilities
	Derivative contracts			$	5.2	$	—	$	5.2	$	—
	Contingent consideration				3.8		—		—		3.8

		Total Liabilities		$	9.0	$	—	$	5.2	$	3.8

		The following table presents information about the company’s financial assets and liabilities measured at fair
value on a recurring basis as of December 31, 2010:

			December 31,			Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In millions)				2010		(Level 1)		(Level 2)		(Level 3)

Assets
	Cash equivalents			$	301.6	$	301.6	$	—	$	—
	Investments in mutual funds, unit trusts and other similar instruments				36.3		36.3		—		—
	Insurance contracts				42.6		—		42.6		—
	Auction rate securities				4.6		—		—		4.6
	Derivative contracts				40.1		—		40.1		—

		Total Assets		$	425.2	$	337.9	$	82.7	$	4.6

Liabilities
	Derivative contracts			$	3.5	$	—	$	3.5	$	—
	Contingent consideration				28.7		—		—		28.7

		Total Liabilities		$	32.2	$	—	$	3.5	$	28.7

The company determines the fair value of its insurance contracts by obtaining the cash surrender value of the contracts from the issuer. The fair value of derivative contracts is the estimated amount that the company would receive/pay upon liquidation of the contracts, taking into account the change in currency exchange rates. The company determines the fair value of the auction rate securities by obtaining indications of value from brokers/dealers. The company determines the fair value of acquisition-related contingent consideration based on assessment of the probability that the company would be required to make such future payment. Changes to the fair value are recorded in selling, general and administrative expense. The following tables provide a rollforward of the fair value, as determined by Level 3 inputs, of the auction rate securities and contingent consideration.

	Three Months Ended					Six Months Ended
	July 2,		July 3,			July 2,		July 3,
(In millions)	2011			2010		2011			2010

Auction Rate Securities
Beginning Balance	$	4.5		$	5.2	$	4.6		$	5.4
Sale of securities		(0.2)			(0.2)		(0.3)			(0.4)
Total unrealized gains (losses) included in other comprehensive income		0.1			(0.1)		0.1			(0.1)

Ending Balance	$	4.4		$	4.9	$	4.4		$	4.9

	Three Months Ended					Six Months Ended
	July 2,		July 3,			July 2,		July 3,
(In millions)	2011			2010		2011			2010

Contingent Consideration
Beginning Balance	$	3.8		$	22.3	$	28.7		$	0.6
Additions		—			1.8		—			23.5
Payments		(0.1)			—		(25.1)			—
Currency translation		0.1			—		0.2			—

Ending Balance	$	3.8		$	24.1	$	3.8		$	24.1

The notional amounts of derivative contracts outstanding, primarily consisting of foreign currency exchange contracts, interest rate swaps, and interest rate locks, totaled $5.41 billion and $1.78 billion at July 2, 2011 and December 31, 2010, respectively.

The following tables present the fair value of derivative instruments in the consolidated balance sheet and statement of income.

			Fair Value – Assets				Fair Value – Liabilities
			July 2,		December 31,		July 2,		December 31,
(In millions)			2011		2010		2011		2010

Derivatives Designated as Hedging Instruments
	Interest rate swaps and treasury locks (a)		$	59.0	$	37.3	$	—	$	—
Derivatives Not Designated as Hedging Instruments
	Foreign currency exchange contracts (b)			33.0		2.8		5.2		3.5

		Total derivatives	$	92.0	$	40.1	$	5.2	$	3.5

(a)		The fair value of the interest rate swaps is included in the consolidated balance sheet under the captions other assets or other long-term liabilities. The fair value of the treasury locks is included in the consolidated balance sheet under the caption other current assets.
(b)		The fair value of the foreign currency exchange contracts is included in the consolidated balance sheet under the captions other current assets or other accrued expenses.

		Gain (Loss) Recognized
		Three Months Ended					Six Months Ended
		July 2,		July 3,			July 2,		July 3,
(In millions)		2011			2010		2011			2010

Derivatives Designated as Fair Value Hedges
	Interest rate swaps	$	6.9		$	5.2	$	13.3		$	8.6
Derivatives Not Designated as Fair Value Hedges
	Foreign currency exchange contracts		33.6			21.1		6.9			39.0

Gains and losses recognized on interest rate and foreign currency exchange contracts are included in the consolidated statement of income under the caption other expense, net, together with the corresponding, offsetting losses and gains on the underlying hedged transactions except for the exchange rate hedges entered in June 2011 in anticipation of completing the Phadia acquisition (discussed below). The gains on these contracts have no underlying offset in the company's income statement.

On May 19, 2011, in connection with the planned acquisition of Phadia, the company entered into several foreign currency forward contracts to partly mitigate the currency exchange risk associated with the payment of the Euro-denominated purchase price and the planned repayment of multi-currency debt on the Phadia books. As of July 2, 2011, the currencies hedged included the Euro, Swedish krona and Japanese yen, with the aggregate notional amount totaling $2.34 billion. These currency forward contracts were not able to be designated as hedging instruments and therefore the change in the derivative fair value is marked to market through income/expense, resulting in a $33 million gain included in other expense, net, during the three months ended July 2, 2011. The maturity date of these currency forward contracts is November 1, 2011.

The carrying amount and fair value of the company's notes receivable and debt obligations are as follows:

			July 2, 2011				December 31, 2010
			Carrying		Fair		Carrying		Fair
(In millions)			Value		Value		Value		Value

Notes Receivable			$	6.5	$	6.5	$	7.4	$	7.4

Debt Obligations:
	Convertible obligations		$	—	$	—	$	327.9	$	461.4
	Senior notes			3,990.6		4,101.1		1,784.9		1,806.3
	Other			36.7		36.7		24.3		24.3

			$	4,027.3	$	4,137.8	$	2,137.1	$	2,292.0

		The fair value of debt obligations was determined based on quoted market prices and on borrowing rates
available to the company at the respective period ends.