Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

Fair value measurements

FAIR VALUE MEASUREMENTS

ASC Topic 820 emphasizes that fair value is a market-based measurement, not an entity specific measurement. Therefore, a fair value measurement should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair values as follows:

Level 1:	Observable inputs such as quoted prices in active markets;
Level 2:	Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
Level 3:	Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques noted in ASC Topic 820:

A. Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

B. Cost approach: Amount that would be required to replace the service capacity of an asset (replacement cost).

C. Income approach: Techniques to convert future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing and excess earnings models).

The following table classifies the assets and liabilities measured at fair value on a recurring basis as of December 31, 2011:

			Basis of fair value measurements
	Balance at December 31, 2011		Quoted prices in active markets for identical items (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Valuation technique
(millions of dollars)
Assets:
Foreign currency contracts	$	2.7	$	—	$	2.7	$	—	A
Other non-current assets (insurance settlement agreement note receivable)	$	21.3	$	—	$	21.3	$	—	C
Liabilities:
Foreign currency contracts	$	2.9	$	—	$	2.9	$	—	A
Net investment hedge contracts	$	85.0	$	—	$	85.0	$	—	A

The following table classifies the assets and liabilities measured at fair value on a recurring basis as of December 31, 2010:

			Basis of fair value measurements
	Balance at December 31, 2010		Quoted prices in active markets for identical items (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Valuation technique
(millions of dollars)
Assets:
Foreign currency contracts	$	2.7	$	—	$	2.7	$	—	A
Liabilities:
Foreign currency contracts	$	6.4	$	—	$	6.4	$	—	A
Net investment hedge contracts	$	75.7	$	—	$	75.7	$	—	A

The following tables classify the Company's defined benefit plan assets measured at fair value on a recurring basis as of December 31, 2011:

			Basis of fair value measurements
	Balance at December 31, 2011		Quoted prices in active markets for identical items (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Valuation technique
(millions of dollars)
U.S. Plans:
Fixed income securities	$	158.2	$	—	$	158.2	$	—	A
Equity securities	101.5		49.6		51.9		—		A
Real estate and other	30.7		—		30.7		—		A
	$	290.4	$	49.6	$	240.8	$	—
Non-U.S. Plans:
Fixed income securities	$	63.5	$	—	$	63.5	$	—	A
Equity securities	78.3		—		78.3		—		A
Real estate and other	13.1		—		13.1		—		A
	$	154.9	$	—	$	154.9	$	—

The following tables classify the Company's defined benefit plan assets measured at fair value on a recurring basis as of December 31, 2010:

			Basis of fair value measurements
	Balance at December 31, 2010		Quoted prices in active markets for identical items (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Valuation technique
(millions of dollars)
U.S. Plans:
Fixed income securities	$	113.7	$	—	$	113.7	$	—	A
Equity securities	140.5		48.5		92.0		—		A
Real estate and other	33.0		—		33.0		—		A
	$	287.2	$	48.5	$	238.7	$	—
Non-U.S. Plans:
Fixed income securities	$	59.6	$	—	$	59.6	$	—	A
Equity securities	88.4		—		88.4		—		A
Real estate and other	6.6		—		6.6		—		A
	$	154.6	$	—	$	154.6	$	—

Refer to Note 11, “Retirement Benefit Plans," for more detail surrounding the defined plan’s asset investment policies and strategies, target allocation percentages and expected return on plan asset assumptions.