Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities

(12) Derivative Instruments and Hedging Activities

As a multinational corporation with operations throughout the world, we are subject to certain market risks.  We use a variety of practices to manage these market risks, including, when considered appropriate, derivative financial instruments.  We use derivative financial instruments only for risk management and not for trading or speculative purposes.

The following table sets forth the fair values of our derivative instruments and where they are recorded within our Consolidated Balance Sheets:

Liability Derivatives	Balance Sheet Location	Fair Value as of December 31,
		2013			2012
Derivatives designated as hedging instruments:
Interest rate swaps	Other long-term liabilities	$	(5.3	)	$	(8.4	)
Interest rate swaps	Accrued liabilities		(0.5	)		-

Cash Flow Hedges

	Amount of Gain or (Loss) Recognized in OCI on Derivatives, net of tax
Derivatives in Cash Flow Hedging Relationships	(Effective Portion)
	Year Ended December 31,
	2013		2012
Interest rate swaps	$	1.8	$	0.6

We use interest rate swaps to manage variable interest rate risk on debt securities.  Interest rate differentials are paid or received on these arrangements over the life of the swap.  As of December 31, 2012 and 2011, we had an interest rate swap outstanding which effectively hedges the variable interest rate on $30 of our senior notes to a fixed rate of 5.6% per annum.  We also had other interest rate swaps outstanding which effectively hedge the variable interest rate on $33 of our borrowings as of December 31, 2012 and 2011, under our revolving credit agreement, to a fixed rate of 3.3% per annum, plus credit spread.

Other

We are exposed to potential gains or losses from foreign currency fluctuations affecting net investments and earnings denominated in foreign currencies.  We are particularly sensitive to currency exchange rate fluctuations for the following currencies: British pound sterling (GBP), Chinese renminbi (CYN), Danish kroner (DKK), Euro, Indian rupee (INR), Malaysian ringgit (MYR), Norwegian krone (NOK), Polish zloty (PLN), South African Rand (ZAR), Swiss franc (SEK), Thai baht (THB), and Turkish lira (TRY).  When considered appropriate, we enter into foreign exchange derivative contracts to mitigate the risk of fluctuations on these exposures.

We have not designated these contracts for hedge accounting treatment and therefore, changes in fair value of these contracts are recorded in earnings as follows:

	Location of
	Gain or (Loss)	Amount of Gain or (Loss) Recognized in
Derivatives Not Designated as Hedging Instruments	Recognized in	Income on Derivatives
	Income on	Year Ended December 31,
	Derivatives		2013			2012			2011
Foreign exchange derivative instruments	Other, net	$	(3.5	)	$	(0.4	)	$	(0.5	)

We did not have any foreign exchange derivative instruments outstanding as of December 31, 2013 or 2012.