Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Measurements [Abstract]

Fair Value Measurements

(6) Fair Value Measurements

The classification of fair value measurements within the established three-level hierarchy is based upon the lowest level of input that is significant to the measurement. There were no transfers between levels for the three or six months ended June 30, 2013. At June 30, 2013, the Company had an interest rate swap recorded at fair value. The fair value of the interest rate swap is calculated using standard industry models based on observable forward yield curves. The fair values of all derivative instruments are adjusted for credit risk and restrictions and other terms specific to the contracts. The Company also utilizes foreign currency forward contracts to manage the risk associated with exposures to foreign currency risk related to intercompany debt and associated interest payments. In addition, the Company utilizes diesel swap contracts to manage the risk associated with fluctuations in the prices of diesel fuel used in the transportation of its finished products to customers. The foreign currency forward contracts, option contracts and diesel swap contracts are not material to the accompanying Condensed Consolidated Financial Statements.

The following table provides a summary by level of the fair value of financial instruments that are measured on a recurring basis:

(in millions)				Fair Value Measurements at June 30, 2013 Using:
	June 30, 2013			Quoted Prices in  Active Markets for Identical  Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant  Unobservable Inputs (Level 3)
Liabilities:
Interest rate swap		$	2.7		$	—		$	2.7		$	—

(in millions)				Fair Value Measurements at December 31, 2012 Using:
	December 31, 2012			Quoted Prices in  Active Markets  for Identical  Assets (Level 1)			Significant Other Observable  Inputs (Level 2)			Significant Unobservable  Inputs (Level 3)
Liabilities:
Interest rate swap		$	4.3		$	—		$	4.3		$	—

The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short-term maturity of those instruments. Borrowings under the 2012 Credit Agreement are at variable interest rates and accordingly their carrying amounts approximate fair value. The fair value of the Senior Notes was approximately $393.8 million at June 30, 2013. The fair value of the Sealy 8.0% Notes was approximately $97.3 million at June 30, 2013.