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<!-- Begin Block Tagged Note 11 - gdi:HedgingActivitiesAndFairValueMeasurementsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 11. Hedging Activities and Fair Value Measurements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Hedging Activities</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company is exposed to certain market risks during the normal course of its business
arising from adverse changes in commodity prices, interest rates, and foreign currency exchange
rates. The Company’s exposure to these risks is managed through a combination of operating and
financing activities. The Company selectively uses derivative financial instruments
(“derivatives”), including foreign currency forward contracts and interest rate swaps, to manage
the risks from fluctuations in foreign currency exchange rates and interest rates, respectively.
The Company does not purchase or hold derivatives for trading or speculative purposes.
Fluctuations in commodity prices, interest rates, and foreign currency exchange rates can be
volatile, and the Company’s risk management activities do not totally eliminate these risks.
Consequently, these fluctuations could have a significant effect on the Company’s financial
results.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s exposure to interest rate risk results primarily from its borrowings of $313.8
million at June 30, 2010. The Company manages its debt centrally, considering tax consequences and
its overall financing strategies. The Company manages its exposure to interest rate risk by
maintaining a mixture of fixed and variable rate debt and, from time to time, uses pay-fixed
interest rate swaps as cash flow hedges of variable rate debt in order to adjust the relative
proportions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A substantial portion of the Company’s operations is conducted by its subsidiaries outside of
the U.S. in currencies other than the USD. Almost all of the Company’s non-U.S. subsidiaries
conduct their business primarily in their local currencies, which are also their functional
currencies. Other than the USD, the EUR, British pound sterling (“GBP”), and Chinese yuan (“CNY”)
are the principal currencies in which the Company and its subsidiaries enter into transactions.
The Company is exposed to the impacts of changes in foreign currency exchange rates on the
translation of its non-U.S. subsidiaries’ assets, liabilities, and earnings into USD. The Company
partially offsets these exposures by having certain of its non-U.S. subsidiaries act as the obligor
on a portion of its borrowings and by denominating such borrowings, as well as a portion of the
borrowings for which the Company is the obligor, in currencies other than the USD.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company and its subsidiaries are also subject to the risk that arises when they, from time
to time, enter into transactions in currencies other than their functional currency. To mitigate
this risk, the Company and its subsidiaries typically settle intercompany trading balances monthly.
The Company also selectively uses forward currency contracts to manage this risk. These contracts
for the sale or purchase of European and other currencies generally mature within one year.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In accordance with FASB ASC 815, <i>Derivatives and Hedging </i>(“FASB ASC 815”), the Company records
its derivatives as assets or liabilities on the balance sheet at fair value. Changes in the fair
value of derivatives are recognized either in net income or in other comprehensive income (“OCI”),
depending on the designated purpose of the derivative. All cash flows associated with derivatives
are classified as operating cash flows in the Condensed Consolidated Statements of Cash Flows. It
is the Company’s policy not to speculate in derivative instruments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Fluctuations due to changes in foreign currency exchange rates in the value of non-USD
borrowings that have been designated as hedges of the Company’s net investment in foreign
operations are included in other comprehensive income.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following tables summarize the notional amounts, fair values and classification of the
Company’s outstanding derivatives by risk category and instrument type within the Condensed
Consolidated Balance Sheets:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Asset</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Liability</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Notional</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Derivatives</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Derivatives</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Balance Sheet Location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Amount (1)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fair Value (1)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fair Value (1)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives designated as
hedging instruments under
FASB ASC 815</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap contracts
</div></td>
<td> </td>
<td colspan="3" align="left">Other liabilities</td>
<td> </td>
<td align="right">$</td>
<td align="right">74,459</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,658</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives not designated
as hedging instruments
under FASB ASC 815</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency forwards
</div></td>
<td> </td>
<td colspan="3" align="left">Other current assets</td>
<td> </td>
<td align="right">$</td>
<td align="right">104,784</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,048</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,005</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>December 31, 2009</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Asset</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Liability</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Notional</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Derivatives</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Derivatives</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Balance Sheet Location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Amount (1)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fair Value (1)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fair Value (1)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives designated as
hedging instruments under
FASB ASC 815</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap contracts
</div></td>
<td> </td>
<td colspan="3" align="left">Other assets</td>
<td> </td>
<td align="right">$</td>
<td align="right">132,320</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">479</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Derivatives not designated
as hedging instruments
under FASB ASC 815</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency forwards
</div></td>
<td> </td>
<td colspan="3" align="left">Accrued liabilities</td>
<td> </td>
<td align="right">$</td>
<td align="right">3,049</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">6</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">128</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency forwards
</div></td>
<td> </td>
<td colspan="3" align="left">Other current assets</td>
<td> </td>
<td align="right">$</td>
<td align="right">119,738</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,603</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">11</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Notional amounts represent the gross contract amounts of the outstanding derivatives
excluding the total notional amount of positions that have been effectively closed through
offsetting positions. The net gains and net losses associated with positions that have been
effectively closed through offsetting positions but not yet settled are included in the asset
and liability derivatives fair value columns, respectively.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Gains and losses on derivatives designated as cash flow hedges in accordance with FASB
ASC 815 included in the Condensed Consolidated Statement of Operations for the three and six-month
periods ended June 30, 2010 and 2009, respectively, are as presented in the table below.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>Interest rate swap contracts</b> <sup style="font-size: 85%; vertical-align: text-top"><b>(1)</b></sup></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amount of gain or (loss) recognized in
AOCI on derivatives (effective portion)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(825</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">207</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(1,912</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">207</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amount of gain or (loss) reclassified from
AOCI into income (effective portion)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(330</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(159</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(711</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(159</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amount of gain or (loss) recognized in
income on derivatives (ineffective portion
and amount excluded from effectiveness
testing)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Losses on derivatives reclassified from accumulated other comprehensive income (“AOCI”)
into income (effective portion) were included in the interest expense line on the face of the
Condensed Consolidated Statements of Operations.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At June 30, 2010, the Company is the fixed rate payor on three interest rate swap
contracts that effectively fix the LIBOR-based index used to determine the interest rates charged
on a total of $50.0 million and €20.0 million of the Company’s LIBOR-based variable rate
borrowings. These contracts carry fixed rates ranging from 1.8% to 2.2% and have expiration dates
ranging from 2012 to 2013. These swap agreements qualify as hedging instruments and have been
designated as cash flow hedges of forecasted LIBOR-based interest payments. Based on LIBOR-based
swap yield curves as of June 30, 2010, the Company expects to reclassify losses of $1.0 million out
of AOCI into earnings during the next 12 months. The Company’s LIBOR-based variable rate
borrowings outstanding at June 30, 2010 were $94.0 million and €60.3 million.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     There were 41 foreign currency forward contracts outstanding as of June 30, 2010 with notional
amounts ranging from $0.1 million to $10.7 million. The Company has not designated any forward
contracts as hedging instruments. The majority of these contracts are used to hedge the change in
fair value of recognized foreign currency denominated assets or liabilities caused by changes in
foreign currency exchange rates. The changes in the fair value of these contracts generally offset
the changes in the fair value of a corresponding amount of the hedged items, both of which are
included in the other operating expense, net, line on the face of the Condensed Consolidated
Statements of Operations. The Company recorded net gains of $2.2 million and net losses of $20.1
million during the three-month periods ended June 30, 2010 and 2009, respectively, relating to
foreign currency forward contracts outstanding during all or part of each period. During the
six-month periods ended June 30, 2010 and 2009, the Company recorded net gains of $5.4 million and
net losses of $13.9 million, respectively, relating to foreign currency forward contracts
outstanding during all or part of each period. Total net foreign currency gains or losses reported
in other operating expense, net, were losses of $0.4 million and $1.8 million for the three-month
periods ended June 30, 2010 and 2009, respectively, and a net gain of $0.6 million and a loss of
$1.6 million in the six-month periods ended June 30, 2010 and 2009, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of June 30, 2010, the Company has designated a portion of its term loan denominated in EUR
of approximately €16.0 million as a hedge of the Company’s net investment in subsidiaries with
EUR functional currencies. Accordingly, changes in the fair value of this debt due to changes in
the USD to EUR exchange rate are recorded through other comprehensive income. During the
three-month periods ended June 30, 2010 and 2009, the Company recorded gains of $1.6 million and
losses of $5.5 million, net of tax, respectively, through other comprehensive income. During the
six-month periods ended June 30, 2010 and 2009, the Company recorded gains of $2.6 million and
losses of $0.4 million, net of tax, respectively, through other comprehensive income. As of June
30, 2010 and 2009, the net balances of such gains and losses included in accumulated other comprehensive
income were losses of $2.8 million and $3.6 million, net of tax, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Fair Value Measurements</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s financial instruments consist primarily of cash equivalents, trade receivables,
trade payables, deferred compensation assets and obligations, derivatives and debt instruments. The
book values of these instruments, other than the Senior Subordinated Notes, are a reasonable
estimate of their respective fair values.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Senior Subordinated Notes outstanding are carried at cost. Their estimated fair value was
approximately $127.5 million as of June 30, 2010 based upon non-binding market quotations that were
corroborated by observable market data (Level 2).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the Company’s fair value hierarchy for its financial assets and
liabilities measured at fair value on a recurring basis as of June 30, 2010:
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Level 1</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Level 2</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Level 3</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Total</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Financial Assets</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency forwards <sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,048</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,048</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Trading securities held in deferred compensation plan <sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">8,515</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,515</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">8,515</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,048</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">10,563</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Financial Liabilities</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency forwards <sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,005</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,005</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swaps <sup style="font-size: 85%; vertical-align: text-top">(3)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,658</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,658</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Phantom stock plan <sup style="font-size: 85%; vertical-align: text-top">(4)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,330</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,330</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred compensation plan <sup style="font-size: 85%; vertical-align: text-top">(5)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">8,515</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,515</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">8,515</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">5,993</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">14,508</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Based on internally-developed models that use as their basis readily observable market
parameters such as current spot and forward rates, and the LIBOR index.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(2)</td>
<td> </td>
<td>Based on the observable price of publicly traded mutual funds which, in accordance with FASB
ASC 710, <i>Compensation – General</i>, are classified as “Trading” securities and accounted for
using the mark-to-market method.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(3)</td>
<td> </td>
<td>Measured as the present value of all expected future cash flows based on the LIBOR-based swap
yield curve as of June 30, 2010. The present value calculation uses discount rates that have
been adjusted to reflect the credit quality of the Company and its counterparties.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(4)</td>
<td> </td>
<td>Based on the price of the Company’s common stock.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(5)</td>
<td> </td>
<td>Based on the fair value of the investments in the deferred compensation plan.</td>
</tr>
</table>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Notefalsefalsefalseus-types:textBlockItemTypetextblockInformation about risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising there from and the amounts of and methodologies and assumptions used in determining the amounts of such items.No authoritative reference available.false12falseUnKnownUnKnownUnKnownfalsetrue