Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2013

Summary of Valuation of Company's Derivatives by Pricing Observability Levels

The following tables summarize the valuation of the Company’s derivatives by the above noted pricing observability levels:


			Fair Value Measurements at March 31, 2013
			Using
Description	Total carrying amount in Consolidated Balance Sheet March 31, 2013		Level 1		Level 2		Level 3

Assets
Derivatives ^a)	$	1.9		—	$	1.9		—
Total Assets	$	1.9		—	$	1.9		—

Liabilities
Derivatives	$	0.7		—	$	0.7		—
Total Liabilities	$	0.7		—	$	0.7		—

^a)	The decrease from previous period is explained by the closure of a $60 million interest rate swap in Q1 of 2013.


			Fair Value Measurements at December 31, 2012
			Using
Description	Total carrying amount in Consolidated Balance Sheet December 31, 2012		Level 1		Level 2		Level 3

Assets
Derivatives	$	16.5		—	$	16.5		—
Total Assets	$	16.5		—	$	16.5		—

Liabilities
Derivatives	$	0.7		—	$	0.7		—
Total Liabilities	$	0.7		—	$	0.7		—

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2013 and December 31, 2012. Although the Company is party to close-out netting agreements with all derivative counterparties, the fair values in the tables below and in the Consolidated Balance Sheets at March 31, 2013 and December 31, 2012, have been presented on a gross basis. The net amounts subject to netting agreements that the Company choose not to offset are presented in footnotes. According to the close-out netting agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted.


				Fair Value Measurements at March 31, 2013
Description	Nominal volume			Derivative asset			Derivative liability			Balance sheet location
Derivatives designated as hedging instruments
Interest rate swaps, less than 7 years (fair value hedge) ^a)	$	—		$	—		$	—		Other non-current asset
Total derivatives designated as hedging instruments	$	—		$	—		$	—

Derivatives not designated as hedging instruments

Foreign exchange swaps, less than 6 months	$	602.6	¹⁾	$	1.9	²⁾	$	0.7	³⁾	Other current assets/ liabilities

Total derivatives not designated as hedging instruments	$	602.6		$	1.9		$	0.7

Total derivatives	$	602.6		$	1.9		$	0.7

1)	Net amount after deducting for offsetting swaps $532.8 million.

2)	Net amount after deducting for offsetting swaps $1.8 million.

3)	Net amount after deducting for offsetting swaps $0.6 million.

a)	The decrease from previous period is explained by the closure of a $60 million interest rate swap in Q1 of 2013.


				Fair Value Measurements at December 31, 2012
Description	Nominal volume			Derivative asset			Derivative liability			Balance sheet location
Derivatives designated as hedging instruments
Interest rate swaps, less than 7 years (fair value hedge)	$	60.0		$	15.8		$	—		Other non-current asset
Total derivatives designated as hedging instruments	$	60.0		$	15.8		$	—

Derivatives not designated as hedging instruments

Foreign exchange swaps, less than 6 months	$	700.8	¹⁾	$	0.7	²⁾	$	0.7	³⁾	Other current assets/ liabilities

Total derivatives not designated as hedging instruments	$	700.8		$	0.7		$	0.7

Total derivatives	$	760.8		$	16.5		$	0.7

1)	Net amount after deducting for offsetting swaps $569.9 million.

2)	Net amount after deducting for offsetting swaps $0.6 million.

3)	Net amount after deducting for offsetting swaps $0.6 million.

Derivatives Designated as Hedging Instruments

			Amount of gain (loss) recognized in Consolidated Statement of Income Three months ended March 31, 2013
Description	Nominal Volume			Other Financial Items, net		Interest Expense			Interest Income		Amount of gain (loss) recognized in OCI on derivative effective portion		Amount of gain (loss) reclassified from accumulated OCI into interest expense
Derivatives designated as hedging instruments
Interest rate swap, less than 7 years (fair value hedge)^a)	$	—		$	—	$	(1.3	)	$	—	$	—	$	—
Hedged item (fair value hedge)
Fixed rate private placement debt due 2019	$	—		$	—	$	1.3		$	—	$	—	$	—
Total gain(loss) in Consolidated Statement of Income						$	0.0

a)	The decrease from previous period is explained by the closure of a $60 million interest rate swap in Q1 of 2013.


			Amount of gain (loss) recognized in Consolidated Statement of Income Three months ended March 31, 2012
Description	Nominal volume		Other financial items, net		Interest expense			Interest income		Amount of gain (loss) recognized in OCI on derivative effective portion		Amount of gain (loss) reclassified from accumulated OCI into interest expense
Derivatives designated as hedging instruments
Interest rate swap, less than 8 years (fair value hedge)	$	60.0	$	—	$	(0.6	)	$	—	$	—	$	—
Total derivatives designated as hedging instruments	$	60.0
Hedged item (fair value hedge)
Fixed rate private placement debt due 2019	$	60.0	$	—	$	0.6		$	—	$	—	$	—
Total gain(loss) in Consolidated Statement of Income					$	0.0

Derivatives Not Designated as Hedging Instruments


				Amount of gain (loss) recognized in Consolidated Statement of Income Three months ended March 31, 2013
Description	Nominal Volume			Other Financial Items, net		Interest Expense		Interest Income
Derivatives not designated as hedging instruments
Foreign exchange swaps	$	602.6	¹⁾	$	1.2	$	0.0	$	—
Total derivatives not designated as hedging instruments	$	602.6

1)	Net amount after deducting for offsetting swaps $532.8 million.


				Amount of gain (loss) recognized in Consolidated Statement of Income Three months ended March 31, 2012
Description	Nominal Volume			Other Financial Items, net			Interest Expense		Interest Income
Derivatives not designated as hedging instruments
Foreign exchange swaps	$	1,311.4	¹⁾	$	(2.5	)	$	0.1	$	—
Total derivatives not designated as hedging instruments	$	1,311.4

1)	Net amount after deducting for offsetting swaps $1,103.2 million.

Fair Value of Debt

Fair Value of Debt


Long-term debt	March 31, 2013 Carrying value¹⁾		March 31, 2013 Fair value		December 31, 2012 Carrying value¹⁾		December 31, 2012 Fair value
U.S. Private placement	$	304.5	$	332.8	$	305.8	$	329.5
Medium-term notes		99.7		98.5		99.8		99.4
Notes		107.4		109.6		107.6		108.9
Other long-term debt		49.4		49.4		49.7		49.7

Total	$	561.0	$	590.3	$	562.9	$	587.5


Short-term debt
Overdrafts and other short-term debt	$	66.3	$	66.3	$	60.3	$	60.3
Short-term portion of long-term debt		5.8		5.8		9.5		9.5

Total	$	72.1	$	72.1	$	69.8	$	69.8

1)	Debt as reported in balance sheet.

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details