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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Gains and losses related to cash flow hedges are deferred in accumulated other comprehensive loss. When the hedged
transaction occurs, the gains and losses in accumulated other comprehensive loss are reclassified into the Consolidated
Statements of Operations in the same line as the item being hedged. If at any time it is determined that a derivative is not
highly effective as a hedge, we discontinue hedge accounting prospectively, with deferred gains and losses being recognized
in current period operations. The following table sets forth our cash flow hedges which are measured at fair value on a
recurring basis.
December 31, 2012 December 31, 2011
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Unobservable
Inputs
(Level 3)
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Unobservable
Inputs
(Level 3)
(In millions)
Derivative assets
Foreign currency option
contracts ................ $— $5.5 $— $— $2.3 $—
Foreign currency forward
contracts ................ — — — — 1.1 —
Derivative liabilities
Foreign currency option
contracts ................ — (1.2) — — (1.4) —
Foreign currency forward
contracts ................ — (0.1) — — — —
Total ..................... $— $4.2 $— $— $2.0 $—
Other Derivative Instruments. We use foreign currency forward contracts to manage the foreign currency exposure
related to our monetary assets and liabilities denominated in foreign currencies. We record the estimated fair value of these
forward contracts on our Consolidated Balance Sheets and because we do not receive hedge accounting for these
derivatives, changes in their value are recognized every reporting period in the Consolidated Statements of Operations.
For 2012, 2011 and 2010 we recorded foreign currency losses of $1.6 million, $4.6 million and $2.2 million, respectively,
in Other Expenses, net in the Consolidated Statements of Operations. These losses reflect changes in foreign exchange rates
on foreign denominated assets and liabilities and are net of a gain of $0.7 million and include losses of $1.7 million and $4.3
million, from the related foreign currency forward contracts for 2012, 2011 and 2010, respectively.
The notional amounts and fair values of our derivative instruments recorded in other current assets and other current
liabilities in the Consolidated Financial Statements were as follows:
December 31, 2012 December 31, 2011
Fair Value Fair Value
Notional
Amount
Other
Current
Assets
Other Current
Liabilities
Notional
Amount
Other
Current
Assets
Other Current
Liabilities
(In millions)
Cash flow hedges designated as
hedging instruments .......... $248.6 $5.5 $(1.3) $208.2 $3.4 $(1.4)
Other hedges not receiving hedge
accounting ................. 46.5 — — 32.9 — —
Total ................... $295.1 $5.5 $(1.3) $241.1 $3.4 $(1.4)
On December 31, 2012 we entered into certain hedges not receiving hedge accounting treatment and the estimated fair
value of these hedges was inconsequential as of December 31, 2012.
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