2.2.0.25falsefalse0213 - Disclosure - Financial Instruments and Hedging Activities, Concentrations of Credit Risk and Fair Value of Financial Instrumentstruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) USD ($) / shares $Jan-01-2011_Mar-31-2011http://www.sec.gov/CIK0001141982duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170PureStandardhttp://www.xbrl.org/2003/instancepurexbrli0USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0cbe_FinancialInstrumentsAndHedgingActivitiesConcentrationsOfCreditRiskAndFairValueOfFinancialInstrumentsAbstractcbefalsenadurationFinancial Instruments and Hedging Activities, Concentrations of Credit Risk and Fair Value of Financial Instruments.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringFinancial Instruments and Hedging Activities, Concentrations of Credit Risk and Fair Value of Financial Instruments.falsefalseFinancial Instruments and Hedging Activities, Concentrations of Credit Risk and Fair Value of Financial Instruments [Abstract]3false0cbe_FinancialInstrumentsAndHedgingActivitiesConcentrationsOfCreditRiskAndFairValueOfFinancialInstrumentsTextBlockcbefalsenadurationThis element is used to disclose the entity's entire derivative instruments and hedging activities disclosure and complete...falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="margin-top: 12pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><b>Note 13.</b></td> <td> </td> <td><b>Financial Instruments and Hedging Activities, Concentrations of Credit Risk and Fair Value of Financial Instruments</b></td> </tr> </table> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Derivative Instruments and Hedging Activities</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     As a result of having sales, purchases and certain intercompany transactions denominated in currencies other than the functional currencies of Cooper’s businesses, Cooper is exposed to the effect of currency exchange rate changes on its cash flows and earnings. Cooper enters into currency forward exchange contracts to hedge significant non-functional currency denominated transactions for periods consistent with the terms of the underlying transactions. Contracts generally have maturities that do not exceed one year. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Currency forward exchange contracts executed to hedge forecasted transactions are accounted for as cash flow hedges. Currency forward exchange contracts executed to hedge a recognized asset, liability or firm commitment are accounted for as fair value hedges. Cooper sometimes enters into certain currency forward exchange contracts that are not designated as hedges. These contracts are intended to reduce cash flow volatility related to short-term intercompany financing transactions. Cooper also enters into commodity swaps to reduce the volatility of price fluctuations on a portion of up to eighteen months of forecasted material purchases. These instruments are designated as cash flow hedges. Cooper does not enter into speculative derivative transactions. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     During October 2005, Cooper entered into cross-currency swaps to effectively convert its newly issued $325 million, 5.25% fixed-rate debt maturing in November 2012 to €272.6 million of 3.55% fixed-rate debt. The $325 million debt issuance proceeds were swapped to €272.6 million and lent through an intercompany loan to a non-U.S. subsidiary to partially fund repayment of the 300 million Euro bond debt that matured on October 25, 2005. The cross-currency swaps mature in November 2012. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Assets and liabilities measured at fair value using a market approach as of March 31, 2011 on a recurring basis are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Assets</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Liabilities</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">Significant other</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">Significant other</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">observable inputs</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">observable inputs</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">(in millions)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">(Level 2)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">(Level 2)</td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Short-term currency forward exchange contracts </div></td> <td> </td> <td align="right">$</td> <td align="right">26.6</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(13.1</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term currency forward exchange contracts </div></td> <td> </td> <td> </td> <td align="right">52.7</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(21.1</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Short-term commodity swaps </div></td> <td> </td> <td> </td> <td align="right">1.5</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(0.2</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term cross-currency swaps </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(47.0</td> <td nowrap="nowrap">)</td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Except as discussed below, the currency forward exchange contracts and commodity swaps in the above table are designated as hedging instruments. Currency forward exchange contracts representing approximately $37.0 million of assets and $24.6 million of liabilities at March 31, 2011 are not designated as hedging instruments. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Assets and liabilities measured at fair value using a market approach as of December 31, 2010 on a recurring basis are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Assets</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000">Liabilities</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">Significant other</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">Significant other</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">observable inputs</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">observable inputs</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">(in millions)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">(Level 2)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">(Level 2)</td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Short-term currency forward exchange contracts </div></td> <td> </td> <td align="right">$</td> <td align="right">23.9</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(24.7</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term currency forward exchange contracts </div></td> <td> </td> <td> </td> <td align="right">63.3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(26.4</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Short-term commodity swaps </div></td> <td> </td> <td> </td> <td align="right">2.9</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term cross-currency swaps </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(30.2</td> <td nowrap="nowrap">)</td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Except as discussed below, the currency forward exchange contracts and commodity swaps in the above table are designated as hedging instruments. Currency forward exchange contracts representing approximately $48.7 million of assets and $38.3 million of liabilities at December 31, 2010 are not designated as hedging instruments. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     There were no changes in the valuation techniques used to measure asset or liability fair values on a recurring basis in 2011 or 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Gains or losses on derivative instruments are reported in the same line item as the underlying hedged transaction in the consolidated statements of income. The net gain or loss on currency forward exchange contracts was not material in the three months ended March 31, 2011 and 2010. For commodity swaps, Cooper recognized, in cost of sales, a net gain of $1.2 and $1.5 million in the three months ended March 31, 2011 and 2010, respectively. At March 31, 2011, Cooper estimates that approximately $.07 million of net gains on derivative instruments designated as cash flow hedges will be reclassified from accumulated other nonowner changes in equity to earnings during the next twelve months. The amount of discontinued cash flow hedges in the three months ended March 31, 2011 and 2010 was not material. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The table below summarizes the U. S. dollar equivalent contractual amounts of Cooper’s forward exchange contracts at March 31, 2011 and December 31, 2010. </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">March 31,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">December 31,</td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2011</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6">(in millions)</td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. Dollar </div></td> <td> </td> <td align="left">$</td> <td align="right">614.2</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">894.8</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Euro </div></td> <td> </td> <td> </td> <td align="right">365.4</td> <td> </td> <td> </td> <td> </td> <td align="right">335.4</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">British Pound Sterling </div></td> <td> </td> <td> </td> <td align="right">143.9</td> <td> </td> <td> </td> <td> </td> <td align="right">143.9</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Canadian Dollar </div></td> <td> </td> <td> </td> <td align="right">34.8</td> <td> </td> <td> </td> <td> </td> <td align="right">370.6</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">38.4</td> <td> </td> <td> </td> <td> </td> <td align="right">32.3</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="left">$</td> <td align="right">1,196.7</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,777.0</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The contractual amounts of Cooper’s commodity swap contracts at March 31, 2011 and December 31, 2010 were approximately $19 million and $14 million, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Other Instruments</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In the normal course of business, Cooper executes stand-by letters of credit, performance bonds and other guarantees that ensure Cooper’s performance or payment to third parties that are not reflected in the consolidated balance sheets. The aggregate notional value of these instruments was $116.2 million and $108.7 million at March 31, 2011 and December 31, 2010, respectively. In the past, no significant claims have been made against these financial instruments. Management believes the likelihood of demand for payment under these instruments is minimal and expects no material losses to occur in connection with these instruments. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Concentrations of Credit Risk</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Concentrations of credit risk with respect to trade receivables are limited due to the wide variety of customers as well as their dispersion across many different geographic areas with no one customer receivable exceeding 5.0% of accounts receivable at March 31, 2011 (5.0% at December 31, 2010). At March 31, 2011, Cooper has approximately 67% of its cash and cash equivalents held at three financial institutions. Cooper believes these financial institutions to be financially stable. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Fair Value of Financial Instruments Other than Derivatives</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Cooper’s financial instruments other than derivative instruments consist primarily of cash and cash equivalents, trade receivables, trade payables and debt instruments. The book values of cash and cash equivalents, trade receivables, and trade payables are considered to be representative of their respective fair values. Cooper had a book value of approximately $1.44 billion and $1.43 billion for debt instruments at March 31, 2011 and December 31, 2010, respectively. The fair value of these debt instruments, as represented primarily by quoted market prices, was approximately $1.52 billion and $1.52 billion at March 31, 2011 and December 31, 2010, respectively. </div> </div>  <!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringThis element is used to disclose the entity's entire derivative instruments and hedging activities disclosure and complete disclosure regarding the fair value of financial instruments and the measurements of those instruments, assets, and liabilities as a single block of text.No authoritative reference available.falsefalseFinancial Instruments and Hedging Activities, Concentrations of Credit Risk and Fair Value of Financial Instruments12Financial Instruments and Hedging Activities, Concentrations of Credit Risk and Fair Value of Financial InstrumentsUnKnownUnKnownUnKnownUnKnownfalsetrue