Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2015

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 September 30, 2015 and December 31, 2014. The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (ISDA agreements) with all derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheet at September 30, 2015 and in the Consolidated Balance Sheet at December 31, 2014, 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.

	September 30, 2015
				Fair Value Measurements
Description	Nominal volume			Derivative asset			Derivative liability			Balance sheet location
Derivatives designated as hedging instruments 1)
Foreign exchange forward contracts, less than 1 year (cash flow hedge)	$	61.2		$	0.6		$	0.0		Other current assets/ Other current liabilities
Foreign exchange forward contracts, less than 2 year (cash flow hedge)		25.5			0.2			0.0		Other non-current assets/ Other non-current liabilities
Total derivatives designated as hedging instruments	$	86.7		$	0.8		$	0.0
Derivatives not designated as hedging instruments
Foreign exchange swaps, less than 6 months	$	427.4	2)	$	0.2	3)	$	0.4	4)	Other current assets/ Other current liabilities
Total derivatives not designated as hedging instruments	$	427.4		$	0.2		$	0.4

¹⁾ There is no netting since there are no offsetting contracts.

²⁾ Net nominal amount after deducting for offsetting swaps under ISDA agreements is $352.9 million.

³⁾ Net amount after deducting for offsetting swaps under ISDA agreements is $0.2 million.

⁴⁾ Net amount after deducting for offsetting swaps under ISDA agreements is $0.3 million.

	December 31, 2014
				Fair Value Measurements
Description	Nominal volume			Derivative asset			Derivative liability			Balance sheet location
Derivatives designated as hedging instruments 1)
Foreign exchange forward contracts, less than 1 year (cash flow hedge)	$	—		$	—		$	—		Other current assets/ Other current liabilities
Foreign exchange forward contracts, less than 2 year (cash flow hedge)		—			—			—		Other non-current assets/ Other non-current liabilities
Total derivatives designated as hedging instruments	$	—		$	—		$	—
Derivatives not designated as hedging instruments
Foreign exchange swaps, less than 6 months	$	459.1	2)	$	1.3	3)	$	0.4	4)	Other current assets/ Other current liabilities
Total derivatives not designated as hedging instruments	$	459.1		$	1.3		$	0.4

¹⁾ There is no netting since there are no offsetting contracts.

²⁾ Net nominal amount after deducting for offsetting swaps under ISDA agreements is $390.9 million.

³⁾ Net amount after deducting for offsetting swaps under ISDA agreements is $1.3 million.

⁴⁾ Net amount after deducting for offsetting swaps under ISDA agreements is $0.4 million.

Fair Value of Debt

Fair Value of Debt

The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The fair value of derivatives is estimated using a discounted cash flow method based on quoted market prices. The fair value and carrying value of debt is summarized in the table below. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy. The discount rates for all derivative contracts are based on bank deposit or swap interest rates. Credit risk has been considered when determining the discount rates used for the derivative contracts.

Long-term debt	September 30, 2015 Carrying value1)		September 30, 2015 Fair value		December 31, 2014 Carrying value1)		December 31, 2014 Fair value
U.S. Private placement	$	1,422.2	$	1,503.6	$	1,424.2	$	1,510.2
Medium-term notes		77.2		79.4		83.2		86.3
Other long-term debt		0.1		0.1		13.8		13.8
Total	$	1,499.5	$	1,583.1	$	1,521.2	$	1,610.3
Short-term debt
Overdrafts and other short-term debt	$	53.3	$	53.3	$	57.8	$	57.8
Short-term portion of long-term debt		0.2		0.2		21.8		21.8
Total	$	53.5	$	53.5	$	79.6	$	79.6

1) Debt as reported in balance sheet.