Derivatives

6 Months Ended

Jun. 30, 2011

Derivatives [Abstract]

DERIVATIVES

(O) DERIVATIVES

     Interest Rate Swaps

     In May 2011, we issued $350 million of unsecured medium-term notes maturing in June 2017. Concurrently, we entered into three interest rate swaps, with an aggregate notional amount of $150 million maturing in June 2017. The swaps were designated as fair value hedges whereby we receive fixed interest rate payments in exchange for making variable interest rate payments. The differential to be paid or received is accrued and recognized as interest expense. At June 30, 2011, the interest rate swap agreements effectively changed $150 million of fixed-rate debt instruments with an interest rate of 3.50% to LIBOR-based floating-rate debt at a weighted-average interest rate of 1.50%. Changes in the fair value of our interest rate swaps are offset by changes in the fair value of the debt instrument. Accordingly, there is no ineffectiveness related to the interest rate swaps.

     In February 2011, we issued $350 million of unsecured medium-term notes maturing in March 2015. Concurrently, we entered into two interest rate swaps, with an aggregate notional amount of $150 million maturing in March 2015. The swaps were designated as fair value hedges whereby we receive fixed interest rate payments in exchange for making variable interest rate payments. The differential to be paid or received is accrued and recognized as interest expense. At June 30, 2011, the interest rate swap agreements effectively changed $150 million of fixed-rate debt instruments with an interest rate of 3.15% to LIBOR-based floating-rate debt at a weighted-average interest rate of 1.42%. Changes in the fair value of our interest rate swaps are offset by changes in the fair value of the debt instrument. Accordingly, there is no ineffectiveness related to the interest rate swaps.

     In February 2008, we issued $250 million of unsecured medium-term notes maturing in March 2013. Concurrently, we entered into an interest rate swap with a notional amount of $250 million maturing in March 2013. The swap was designated as a fair value hedge whereby we receive fixed interest rate payments in exchange for making variable interest rate payments. The differential to be paid or received is accrued and recognized as interest expense. At June 30, 2011, the interest rate swap agreement effectively changed $250 million of fixed-rate debt with an interest rate of 6.00% to LIBOR-based floating-rate debt at a rate of 2.59%. Changes in the fair value of our interest rate swap are offset by changes in the fair value of the debt instrument. Accordingly, there is no ineffectiveness related to the interest rate swap.

     The location and amount of gains (losses) on interest rate swap agreements designated as fair value hedges and related hedged items reported in the Consolidated Condensed Statements of Earnings were as follows:

	Location of Gain (Loss)	Three months ended June 30,						Six months ended June 30,
Fair Value Hedging Relationship	Recognized in Income	2011			2010			2011			2010
		(In thousands)
Derivatives: Interest rate swaps	Interest expense	$	2,161			2,098		$	1,012			4,125
Hedged items: Fixed-rate debt	Interest expense		(2,161	)		(2,098	)		(1,012	)		(4,125	)
Total		$	—			—		$	—			—

     Foreign Currency Forward Contract

     During three months ended June 30, 2011, we entered into a forward foreign currency exchange contract to mitigate the risk of foreign currency movements on an intercompany transaction with a foreign subsidiary. This forward foreign currency exchange contract was designated as a cash flow hedge. At June 30, 2011, the aggregate notional amount of the forward contract was $270.4 million and has a remaining term of two months. The impact on the consolidated condensed financial statements was as follows:

	Amount of Loss Recognized in
	Accumulated Other Comprehensive			Amount of Gain Reclassified from
	Income (OCI) on Derivative			Accumulated OCI into Income
	Three and six months ended June 30,		Location of Gain Reclassified from	Three and six months ended June 30,
Cash Flow Hedging Relationship	2011		Accumulated OCI into Income	2011
	(In thousands)			(In thousands)
Foreign currency forward contract	$	136	Miscellaneous income, net	$	4,173

     During the three and six months ended June 30, 2011, the amount reclassified into income from the foreign currency forward contract was entirely offset by a foreign currency transaction loss. As of June 30, 2011, there was no ineffectiveness related to our forward foreign currency exchange contract. Refer to Note (N), “Fair Value Measurements,” for disclosures of the fair value and line item caption of derivative instruments recorded on the Consolidated Condensed Balance Sheets.