Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Location and Fair Value of Derivative Instruments Designated as Hedging Instruments

The location and fair value of derivative instruments that are 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, 2013		December 31, 2012
(dollars in millions)
Forward currency contracts	Other current assets	$	1.7	$	1.4
Option currency contracts	Other current assets		1.4		0.6
Forward currency contracts	Other assets		0.2		—
Interest rate swap contract	Other assets		9.8		13.3
		$	13.1	$	15.3
Forward currency contracts	Accrued expenses	$	0.3	$	0.4
Forward currency contracts	Other long-term liabilities		0.1		—
		$	0.4	$	0.4

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 (Loss)						Location of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss to Income	Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
	Quarter Ended September 30,							Quarter Ended September 30,
	2013			2012				2013			2012
(dollars in millions)
Forward currency contracts	$	(0.5	)	$	1.5		Cost of goods sold	$	1.7		$	(0.4	)
Option currency contracts		0.9			(0.6	)	Cost of goods sold		(0.6	)		0.6
	$	0.4		$	0.9			$	1.1		$	0.2

	Gain/(Loss) Recognized in Other Comprehensive Income (Loss)				Location of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss to Income	Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
	Nine Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013			2012
(dollars in millions)
Forward currency contracts	$	4.1	$	4.0	Cost of goods sold	$	1.7		$	(0.4	)
Option currency contracts		1.0		1.0	Cost of goods sold		(1.1	)		1.5
	$	5.1	$	5.0		$	0.6		$	1.1

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		(Loss)/Gain Recognized on Swap										Gain/(Loss) Recognized on Long-Term Debt
			Quarter Ended September 30,					Nine Months Ended September 30,					Quarter Ended September 30,					Nine Months Ended September 30,
			2013			2012		2013			2012		2013		2012			2013		2012
(dollars in millions)
Interest rate swap contract		Interest expense	$	(0.3	)	$	1.0	$	(3.5	)	$	2.5	$	0.3	$	(1.0	)	$	3.5	$	(2.5	)

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

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

	Income Statement Location	Gain Recognized in Earnings
		Quarter Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
(dollars in millions)
Forward currency contracts(A)	Other (income) expense, net	$	—	$	—	$	—	$	3.0

^(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 measured at fair value on a recurring basis:

	September 30, 2013		December 31, 2012
(dollars in millions)
Forward currency contracts	$	1.5	$	1.0
Option currency contracts		1.4		0.6
Interest rate swap contract		9.8		13.3

Accounts Receivable, Net of Allowances

At September 30, 2013, 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	$	23.0	$	4.8
Italy		23.1		2.4
Greece		10.5		3.2
Portugal		4.0		1.7
	$	60.6	$	12.1