Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Location and Fair Value of Derivative Instruments Segregated Between Designated and Not Designated Hedging Instruments

The location and fair value 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:

	Balance Sheet Location	Fair Value of Derivatives
Derivatives Designated as Hedging Instruments		September 30, 2012		December 31, 2011
(dollars in millions)
Forward currency contracts	Other current assets	$	1.3	$	1.5
Option currency contracts	Other current assets		2.7		4.3
Forward currency contracts	Other assets		0.3		—
Option currency contracts	Other assets		0.6		—
Interest rate swap contract	Other assets		14.6		12.1
		$	19.5	$	17.9
Forward currency contracts	Accrued expenses	$	0.8	$	6.4
Forward currency contracts	Other long-term liabilities		0.1		—
		$	0.9	$	6.4
Derivatives Not Designated as Hedging Instruments
(dollars in millions)
Forward currency contracts	Other current assets	$	—	$	3.8
		$	—	$	3.8

Location and Amounts of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedges

The location and amounts of gains and losses on derivative instruments designated as cash flow hedges and the impact on 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 into Income
	Quarter Ended September 30,							Quarter Ended September  30,
	2012			2011				2012			2011
(dollars in millions)
Forward currency contracts	$	1.2		$	(4.3	)	Costs of goods sold	$	(0.3	)	$	(0.1	)
Option currency contracts		(1.1	)		0.2		Costs of goods sold		0.5			—
	$	0.1		$	(4.1	)		$	0.2		$	(0.1	)
	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 into Income
	Nine Months Ended September 30,							Nine Months Ended September 30,
	2012			2011				2012			2011
(dollars in millions)
Forward currency contracts	$	3.3		$	(4.2	)	Costs of goods sold	$	(0.2	)	$	0.8
Option currency contracts		(1.2	)		0.1		Costs of goods sold		1.1			—
	$	2.1		$	(4.1	)		$	0.9	(A)	$	0.8	(A)

^(A)  The tax effect of the amount reclassified from accumulated other comprehensive loss to income was $0.2 million and $0.7 million at September 30, 2012 and 2011, respectively.

Location and Amounts of Gains and Losses on Derivative Instrument Designated as Fair Value Hedge

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

	Income  Statement Location	Gain Recognized on Swap								Loss Recognized on Long-Term Debt
		Quarter Ended September  30,				Nine Months  Ended September 30,				Quarter Ended September  30,						Nine Months  Ended September 30,
		2012		2011		2012		2011		2012			2011			2012			2011
(dollars in millions)
Interest rate swap contract	Interest expense	$	1.0	$	7.7	$	2.5	$	11.7	$	(1.0	)	$	(7.7	)	$	(2.5	)	$	(11.7	)

Location and Amounts of Gains and Losses on Derivative Instruments Not Designated as Hedging Instruments

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

	Income  Statement Location	Gain/(Loss) Recognized in Earnings
		Quarter Ended September  30,					Nine Months  Ended September 30,
		2012		2011			2012		2011
(dollars in millions)
Forward currency contracts(A)	Other (income) expense, net	$	—	$	(5.1	)	$	3.0	$	(0.5	)

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

Financial Instrument Assets and (Liabilities) Measured at Fair Value on Recurring Basis

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

	September 30, 2012		December 31, 2011
(dollars in millions)
Foreign government bonds and notes	$	—	$	3.6
Forward currency contracts		0.7		(1.1	)
Option currency contracts		3.3		4.3
Interest rate swap contract		14.6		12.1

Accounts Receivable, Net of Allowances

At September 30, 2012, the company’s accounts receivable, net of allowances, from the national healthcare systems in these countries and amounts past due greater than 365 days are as follows:

	Accounts receivable, net		Greater than 365 days past due
(dollars in millions)
Spain	$	14.2	$	1.3
Italy		26.8		4.5
Greece		11.9		3.8
Portugal (A)		3.7		0.6
	$	56.6	$	10.2

^(A)  Subsequent cash collections in the fourth quarter of 2012 were approximately $0.6 million, of which $0.2 million related to receivables greater than 365 days past due.