Fair Value

3 Months Ended

Mar. 31, 2012

Fair Value [Abstract]

Fair Value

15. FAIR VALUE

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy:

Level 1	Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2	Unadjusted quoted prices in active markets for similar assets or liabilities, or
	Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or
	Inputs other than quoted prices that are observable for the asset or liability
Level 3	Unobservable inputs for the asset or liability

The Company uses the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2012 and December 31, 2011 (in millions):

	March 31,		December 31,
	2012		2011		Classification
Assets:
Prepaid Expenses and Other Current Assets:
Derivative Currency Contracts	$	18.2	$	0.5	Level 2
Derivative Commodity Contracts		16.4		2.6	Level 2
Other Noncurrent Assets:
Derivative Currency Contracts		4.5		0.1	Level 2
Derivative Commodity Contracts		2.5		1.0	Level 2
Liabilities:
Other Accrued Expenses:
Deferred Contingent Purchase Price	$	4.0	$	2.0	Level 3
Hedging Obligations Current:
Derivative Currency Contracts		3.2		13.6	Level 2
Derivative Commodity Contracts		11.2		12.5	Level 2
Hedging Obligations:
Interest Rate Swap		39.8		42.0	Level 2
Derivative Currency Contracts		2.2		11.7	Level 2
Derivative Commodity Contracts		0.4		1.4	Level 2
Other Noncurrent Liabilities:
Deferred Contingent Purchase Price		19.8		21.5	Level 3

The table below sets forth a summary of changes in fair market value of the Company's Level 3 liabilities for the three months ended March 31, 2012 and April 2, 2011 (in millions):

		xxxxx		xxxxx
	Three Months Ended
	March 31, 2012		April 2, 2011
Beginning Balance	$	23.5	$	11.0
Valuation Adjustments		0.3		(1.2	)
Ending Balance	$	23.8	$	9.8

The Company's derivative contracts are valued at fair value using the market or income approaches. The Company measures the fair value of foreign exchange contracts using Level 2 inputs based on observable spot and forward rates in active markets. The Company measures the fair value of commodity contracts using Level 2 inputs through observable market transactions in active markets provided by financial institutions. The Company measures the fair value of interest rate swaps using Level 2 inputs in an income approach for valuation based on expected interest rate yield curves over the remaining duration of the interest rate swaps. During the quarter ended March 31, 2012, there were no transfers between classification Levels 1, 2 or 3.

The Level 3 liabilities described above are comprised entirely of the deferred contingent purchase price of two of the Company's acquisitions as discussed in Note 3, and are measured using Level 3 inputs. In connection with the two acquisitions, the Company recorded a contingent consideration fair value of $23.8 million, as of March 31, 2012, which reflects a $0.3 million increase in the liability from December 31, 2011. The contingent consideration, payable in cash, is based upon sales or earnings before interest and income taxes for the acquired businesses for the applicable contingency period. The fair value of the contingent consideration is a Level 3 input; the measurement of which is derived using a probability weighted discounted cash flow analysis. The Company has estimated that the maximum contingent amount will be paid under both agreements so the key assumption is the estimated timing of the payments. The discounted cash flow utilized risk-based discount rates ranging from approximately 5.0% to 8.0%.