Annual report pursuant to Section 13 and 15(d)

Derivative Instruments and Hedging Activities (Tables)

v2.4.0.6
Derivative Instruments and Hedging Activities (Tables)
12 Months Ended
Dec. 31, 2012
Aggregate Interest Rate Swaps and Fair Value of Liabilities Outstanding

The table below describes the interest rate swaps in aggregate, and the fair value of the liabilities that were outstanding as of December 31, 2012 and 2011:

Interest Rate

   Aggregate
Notional
Amounts
     Average
Swap
Rate
    Aggregate
Fair
Value
    Maturity
Dates
 
     (In millions)            (In millions)        

At December 31, 2012

         

Interest Rate Swaps

   $ 140.0         2.78   $ (2.0     July 2013   

At December 31, 2011

         

Interest Rate Swaps

   $ 140.0         2.78   $ (5.1     July 2013   
Summary of Foreign Currency Forward Contracts Outstanding

The table below describes all foreign currency forward contracts that were outstanding as of December 31, 2012 and 2011:

Foreign Currency

   Average
Contract Rate
     Original
Notional Amount
     Fair Value
Gain (Loss)
 
            (In millions)      (In millions)  

At December 31, 2012

        

Buy Brazilian real sell U.S. dollar

     2.08       $ 12.5       $ 0.2   

Buy Chinese yuan sell U.S. dollar

     6.29         1.3           

Buy Euro sell Argentine peso

     6.66         3.0           

Buy Euro sell Australian dollar

     1.27         1.4           

Buy Euro sell Chilean peso

     633.00         1.5           

Buy Euro sell Indonesian rupiah

     12,935.00         9.7           

Buy Euro sell Mexican peso

     17.18         143.7         0.3   

Buy Euro sell Malaysian ringgit

     4.06         15.2         (0.1

Buy Euro sell Peruvian nuevo sol

     3.41         2.0           

Buy Euro sell U.S. dollar

     1.33         82.1         (0.4

Buy British pound sell Euro

     0.82         2.4           

Buy Japanese yen sell U.S. dollar

     85.88         9.3         (0.1

Buy South Korean won sell U.S. dollar

     1,077.18         52.5         0.2   

Buy Malaysian ringgit sell Euro

     4.07         0.8           

Buy Malaysian ringgit sell U.S. dollar

     3.08         21.7         0.1   

Buy U.S. dollar sell Brazilian real

     2.05         12.6           

Buy U.S. dollar sell Colombian peso

     1,800.10         11.7         (0.2

Buy U.S. dollar sell Euro

     1.30         174.4         (2.9

Buy U.S. dollar sell British pound

     1.62         16.2         (0.1

Buy U.S. dollar sell South Korean won

     1,089.08         6.3         (0.1

Buy U.S. dollar sell Mexican peso

     13.12         25.4         (0.3

Buy U.S. dollar sell Philippine peso

     40.99         2.9           

Buy U.S. dollar sell New Taiwan dollar

     28.98         0.8           

Buy U.S. dollar sell South African rand

     8.54         0.7           
     

 

 

    

 

 

 

Total forward contracts

      $ 610.1       $ (3.4
     

 

 

    

 

 

 

 

Foreign Currency

   Average
Contract
Rate
     Original
Notional
Amount
     Fair
Value
Gain (Loss)
 
            (In millions)      (In millions)  

At December 31, 2011

        

Buy Chinese yuan sell U.S. dollar

     6.34       $ 2.5       $   

Buy Euro sell Argentine peso

     5.70         3.0           

Buy Euro sell Australian dollar

     1.30         0.8           

Buy Euro sell British pound

     0.83         0.8           

Buy Euro sell Hong Kong dollar

     10.15         0.9           

Buy Euro sell Indonesian rupiah

     11,985.00         2.2           

Buy Euro sell Indian rupee

     69.21         2.3           

Buy Euro sell Mexican peso

     18.14         14.9           

Buy Euro sell Malaysian ringgit

     4.17         6.0         (0.1

Buy Euro sell Russian ruble

     41.74         9.2           

Buy Euro sell U.S. dollar

     1.30         44.8         (0.1

Buy Euro sell South African rand

     10.89         0.6           

Buy British pound sell Euro

     0.84         0.8           

Buy Japanese yen sell U.S. dollar

     77.85         7.0         0.1   

Buy South Korean won sell U.S. dollar

     1,161.81         32.2         (0.2

Buy Malaysian ringgit sell Euro

     4.12         0.8           

Buy Malaysian ringgit sell U.S. dollar

     3.18         19.0           

Buy Peruvian nuevo sol sell U.S. dollar

     2.70         6.7           

Buy Swedish kronor sell Euro

     8.98         1.0           

Buy U.S. dollar sell Argentine peso

     4.37         0.8           

Buy U.S. dollar sell Colombian peso

     1,943.00         5.1           

Buy U.S. dollar sell Euro

     1.37         81.4         4.4   

Buy U.S. dollar sell British pound

     1.55         24.1           

Buy U.S. dollar sell Indian rupee

     53.30         1.0           

Buy U.S. dollar sell South Korean won

     1,156.38         7.5           

Buy U.S. dollar sell Mexican peso

     13.89         37.3         0.4   

Buy U.S. dollar sell Philippine peso

     43.79         3.2           

Buy U.S. dollar sell Russian ruble

     31.86         1.3           

Buy U.S. dollar sell Singapore dollar

     1.28         0.3           

Buy U.S. dollar sell Thai baht

     31.43         0.2           

Buy U.S. dollar sell South African rand

     8.33         1.1           
     

 

 

    

 

 

 

Total forward contracts

      $ 318.8       $ 4.5   
     

 

 

    

 

 

 
Gains (Losses) Relating to Derivative Instruments Recorded in Other Comprehensive Income (Loss)

The following table summarizes gains (losses) relating to derivative instruments recorded in other comprehensive income (loss) during the years ended December 31, 2012, 2011, and 2010:

 

     Amount of Gain (Loss) Recognized
in Other Comprehensive Income (Loss)
For the Year Ended
 
     December 31,
2012
    December 31,
2011
    December 31,
2010
 
     (In millions)  

Derivatives designated as cash flow hedging instruments:

      

Foreign exchange currency contracts relating to inventory and intercompany management fee hedges

   $ (3.3   $ 4.1      $ 5.6   

Interest rate swaps

   $ (0.6   $ (2.1   $ (7.5
Gains (Losses) Relating to Derivative Instruments Recorded to Income

The following table summarizes gains (losses) relating to derivative instruments recorded to income during the years ended December 31, 2012, 2011, and 2010:

 

     Amount of Gain (Loss)
Recognized in Income
For the Year Ended
    Location of Gain (Loss)
Recognized in Income
     December 31,
2012
    December 31,
2011
     December 31,
2010
   
     (In millions)

Derivatives designated as cash flow hedging instruments:

         

Foreign exchange currency contracts relating to inventory hedges and intercompany management fee hedges(1)

   $ (1.8   $       $      Selling, general
and administrative
expenses

Derivatives not designated as hedging instruments:

         

Foreign exchange currency contracts

   $ (10.0   $ 2.7       $ (9.4   Selling, general and
administrative expenses

 

 

(1) For foreign exchange contracts designated as hedging instruments, the amounts recognized in income (loss) represent the amounts excluded from the assessment of hedge effectiveness. There were no ineffective amounts reported for derivatives designated as hedging instruments.
Gains (Losses) Relating to Derivative Instruments Reclassified from Accumulated Other Comprehensive Loss into Income Effective Portion

The following table summarizes gains (losses) relating to derivative instruments reclassified from accumulated other comprehensive loss into income during the years ended December 31, 2012, 2011, and 2010:

 

     Amount of Gain (Loss) Reclassified
from Accumulated Other
Comprehensive Loss into Income
    Location of Gain
(Loss) Reclassified
from Accumulated  Other
Comprehensive Loss into
Income (effective portion)
   For the Year Ended    
   December 31,
2012
    December 31,
2011
    December 31,
2010
   
     (In millions)      

Derivatives designated as cash flow hedging instruments:

        

Foreign exchange currency contracts relating to inventory hedges

   $ 0.1      $ (0.3   $ 1.8      Cost of sales

Foreign exchange currency contracts relating to intercompany management fee hedges

   $ 4.5      $ (1.8   $ 6.6      Selling, general
and administrative
expenses

Interest rate contracts

   $ (3.6   $ (3.6   $ (3.6   Interest expense, net