The company enters into readily marketable forward and option contracts with financial institutions to help reduce its exposure to foreign currency exchange rate fluctuations. These contracts limit volatility because gains and losses associated with foreign currency exchange rate movements are generally offset by movements in the underlying hedged item. The notional value of the company's forward currency and option currency contracts was $233.8 million and $182.7 million at September 30, 2011 and December 31, 2010, respectively. For further discussion regarding the company's use of derivative instruments, see Note 1 of the consolidated financial statements in Bard's 2010 Annual Report on Form 10-K.

The company's outstanding interest rate swap contract effectively converts its 2.875% fixed-rate notes due 2016 to a floating-rate instrument. The notional value of this interest rate swap contract is $250.0 million.

The location and fair values of derivative instruments segregated between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments recognized in the condensed consolidated balance sheets are as follows:

The location and amounts of gains and losses on derivative instruments designated as cash flow hedges and the impact on the condensed consolidated statements of shareholders' investment are as follows:



	Gain/(Loss) Recognized in Other Comprehensive Income						Location of Gain/(Loss) Reclassified from Accumulated Other Comp. Loss to Income	Gain/(Loss) Reclassified from Accumulated Other Comp. Loss to Income
	Quarter Ended September 30,							Quarter Ended September 30,
	2011			2010				2011			2010
(dollars in millions)
Forward currency contracts	$	(4.3	)	$	(0.1	)	Costs of goods sold	$	(0.1	)	$	0.8
Option currency contracts		0.2			(1.5	)	Costs of goods sold		—			0.1

	$	(4.1	)	$	(1.6	)		$	(0.1	)	$	0.9


	Gain/(Loss) Recognized in Other Comprehensive Income						Location of Gain/(Loss) Reclassified from Accumulated Other Comp. Loss to Income	Gain/(Loss) Reclassified from Accumulated Other Comp. Loss to Income
	Nine Months Ended September 30,							Nine Months Ended September 30,
	2011			2010				2011			2010
(dollars in millions)
Forward currency contracts	$	(4.2	)	$	0.5		Costs of goods sold	$	0.8		$	(0.3	)
Option currency contracts		0.1			1.7		Costs of goods sold		—			—

	$	(4.1	)	$	2.2			$	0.8	^(A)	$	(0.3	)^(A)

(A)	The tax effect of the amount reclassified from accumulated other comprehensive loss to income was $0.7 million and $0.2 million at September 30, 2011 and 2010, respectively.

The location and amounts of gains and losses on the derivative instrument designated as a fair value hedge are as follows:

The location and amounts of gains and losses on derivative instruments not designated as hedging instruments are as follows:

(Loss) Recognized in Earnings

Income Statement
Location

Quarter Ended
September 30,

Nine Months Ended
September 30,

2011

(dollars in millions)

Forward currency contracts^(A)

Other (income) expense, net

(5.1

)

(0.5

)

^(A)	These derivative contracts mitigate changes in the value of remeasured foreign currency denominated monetary loans attributable to changes in foreign currency exchange rates.

Financial Instruments Measured at Fair Value on a Recurring Basis

Fair value is defined as the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes a three-level hierarchy to prioritize the inputs used in measuring fair value. The levels within the hierarchy range from Level 1 having the highest priority to Level 3 having the lowest.

The following table summarizes financial assets and (liabilities) measured at fair value on a recurring basis:


	September 30, 2011			December 31, 2010
(dollars in millions)
Greek government bonds	$	12.3		$	—
Forward currency contracts		(3.7	)		3.5
Option currency contracts		2.5			1.5
Interest rate swap contract		12.4			0.7

The fair values were measured using significant other observable inputs and valued by reference to similar financial instruments, adjusted for restrictions and other terms specific to each instrument. All of these financial instruments are categorized as Level 2 under the fair value hierarchy.

There were no outstanding short-term borrowings, including commercial paper borrowings, at September 30, 2011. The fair value of commercial paper borrowings of $80.5 million at December 31, 2010 approximated its carrying value. On October 12, 2011, the company entered into a new $600 million five-year committed syndicated bank credit facility that expires in October 2016. The new credit facility replaces the company's existing $400 million five-year credit agreement that was scheduled to mature in June 2012. The credit facilities support the company's commercial paper program and can be used for general corporate purposes. The facilities include pricing based on the company's long-term credit rating and include a financial covenant that limits the amount of total debt to total capitalization.

The estimated fair value of long-term debt, including the effect of the related interest rate swap contract, was $997.9 million and $937.7 million at September 30, 2011 and December 31, 2010, respectively. The fair value was estimated using dealer quotes for similarly-rated debt instruments over the remaining contractual term of the company's obligation. Long-term debt is categorized as Level 2 under the fair value hierarchy.

Accounts receivable balances include sales to government-supported healthcare systems outside the United States. The company continues to monitor sovereign debt issues and economic conditions in Greece, Italy, Spain, Portugal and other countries in Europe and evaluates accounts receivable in these countries for potential collection risks. Deteriorating credit and economic conditions and other factors in these countries have resulted in, and may continue to result in, an increase in the average length of time that it takes to collect these accounts receivable and may require the company to re-evaluate the collectability of these receivables in future periods.

The company is experiencing significant delays in the collection of accounts receivable associated with the national healthcare system in Greece, which amounted to $13.9 million and $32.8 million, at September 30, 2011 and December 31, 2010, respectively. The Greek government adopted as law in August 2010 a plan to settle its outstanding debts from 2007 through 2009, primarily by issuing non-interest bearing bonds with maturities of one to three years. As of September 30, 2011, the company had received $16.8 million of bonds, net of discount, in settlement of 2007 through 2009 accounts receivable. These bonds are classified as available-for-sale investments and reported at fair value. During the quarter ended September 30, 2011, the company recorded to other (income) expense, net, a charge of $7.0 million related to an other-than-temporary impairment of these bonds.