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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
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, 2013 December 31, 2012
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 ................ $— $1.8 $— $— $5.5 $—
Foreign currency forward
contracts ................ — 3.3 — — — —
Derivative liabilities
Foreign currency option
contracts ................ — (0.2) — — (1.2) —
Foreign currency forward
contracts ................ — (0.5) — — (0.1) —
Total ..................... $— $4.4 $— $— $4.2 $—
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 within other current assets or other current liabilities 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 our
Consolidated Statements of Operations.
For 2013, 2012 and 2011 we recorded foreign currency gains of $0.5 million and losses of $1.6 million and $4.6 million,
respectively, in Other expenses, net in our Consolidated Statements of Operations. These losses reflect changes in foreign
exchange rates on foreign denominated assets and liabilities and are net of gains of $1.7 million and $0.7 million and losses
of $1.7 million, from the related foreign currency forward contracts for 2013, 2012 and 2011, respectively.
The notional amounts and fair values of our derivative instruments recorded in other current assets and other current
liabilities in our Consolidated Financial Statements were as follows:
December 31, 2013 December 31, 2012
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 .......... $133.8 $5.1 $(0.7) $248.6 $5.5 $(1.3)
Other hedges not receiving hedge
accounting ................. 29.4 — — 46.5 — —
Total ................... $163.2 $5.1 $(0.7) $295.1 $5.5 $(1.3)
On December 31, 2013 we entered into certain hedges not receiving hedge accounting treatment and the estimated fair
value of these hedges were inconsequential as of December 31, 2013.
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