Recently issued accounting standards

Adopted

In July 2012, the Financial Accounting Standards Board ("FASB") issued changes to the testing of indefinite-lived intangible assets for impairment, similar to the goodwill changes issued in September 2011. These changes provide an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the fair value of an indefinite-lived intangible asset is less than its carrying amount. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the existing two-step quantitative impairment test, otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. These changes became effective for us for any indefinite-lived intangible asset impairment test performed on January 1, 2013 or later. The adoption of these changes did not impact the consolidated financial statements.

On January 1, 2012, we adopted changes issued by the FASB to conform existing guidance regarding fair value measurement and disclosure between U.S. generally accepted accounting principles ("GAAP") and International Financial Reporting Standards. These changes both clarify the FASB's intent about the application of existing fair value measurement and disclosure requirements and amend certain principles or requirements for measuring fair value or for disclosing information about fair value measurements. The clarifying changes relate to the application of the highest and best use and valuation premise concepts, measuring the fair value of an instrument classified in a reporting entity's shareholders' equity, and disclosure of quantitative information about unobservable inputs used for Level 3 fair value measurements. The amendments relate to measuring the fair value of financial instruments that are managed within a portfolio; application of premiums and discounts in a fair value measurement; and additional disclosures concerning the valuation processes used and sensitivity of the fair value measurement to changes in unobservable inputs for those items categorized as Level 3, a reporting entity's use of a nonfinancial asset in a way that differs from the asset's highest and best use, and the categorization by level in the fair value hierarchy for items required to be measured at fair value for disclosure purposes only. The adoption of these changes had no impact on the consolidated financial statements.

In December 2011, the FASB issued changes to the disclosure of offsetting assets and liabilities. These changes require an entity to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The enhanced disclosures will enable users of an entity's financial statements to understand and evaluate the effect or potential effect of master netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. These changes became effective for us on January 1, 2013. Other than the additional disclosure requirements, the adoption of these changes did not impact the consolidated financial statements.

On January 1, 2013, we adopted changes issued by the FASB to the reporting of amounts reclassified out of accumulated other comprehensive income. These changes require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. These requirements are to be applied to each component of accumulated other comprehensive income. Other than the additional disclosure requirements (see below), the adoption of these changes had no impact on the consolidated financial statements.

The changes in accumulated other comprehensive loss by component were as follows:

	Three months ended September 30,

	2013			2012
Foreign currency translation
Balance at beginning of period	$	(17.4	)	$	(0.1	)
Other comprehensive loss:
Foreign currency translation adjustments⁽¹⁾	$	10.7			19.3

Balance at end of period	$	(6.7	)	$	19.2
Cash flow hedges
Balance at beginning of period	$	(0.4	)	$	(1.5	)
Other comprehensive income (loss):
Net change from periodic revaluations		(0.2	)		(0.5	)
Tax benefit		0.1			0.2

Total Other comprehensive loss before reclassifications, net of tax		(0.1	)		(0.3	)
Net amount reclassified to earnings:
Interest rate swaps⁽²⁾		0.3			0.4
Fuel commodity swaps⁽³⁾		—			(0.3	)

Sub-total		0.3			0.1
Tax expense⁽⁴⁾		(0.1	)		—

Total amount reclassified from Accumulated other comprehensive loss, net of tax⁽⁵⁾		0.2			0.1
Total Other comprehensive income (loss)		0.1			(0.2	)

Balance at end of period		(0.3	)		(1.7	)

	Nine months ended September 30,

	2013			2012
Foreign currency translation
Balance at beginning of period	$	12.7		$	(3.4	)
Other comprehensive loss:
Foreign currency translation adjustments⁽¹⁾		(19.3	)		22.6

Balance at end of period	$	(6.6	)	$	19.2
Cash flow hedges
Balance at beginning of period	$	(1.4	)	$	(1.4	)
Other comprehensive loss:
Net change from periodic revaluations		0.9			(1.4	)
Tax (expense) benefit		(0.4	)		0.6

Total Other comprehensive income (loss) before reclassifications, net of tax		0.5			(0.8	)
Net amount reclassified to earnings:
Interest rate swaps⁽²⁾		1.2			1.2
Fuel commodity swaps⁽³⁾		(0.2	)		(0.4	)

Sub-total		1.0			0.8
Tax expense⁽⁴⁾		(0.4	)		(0.3	)

Total amount reclassified from Accumulated other comprehensive loss, net of tax⁽⁵⁾		0.6			0.5
Total Other comprehensive income (loss)		1.1			(0.3	)

Balance at end of period		(0.3	)		(1.7	)

⁽¹⁾: In all periods presented, there were no tax impacts related to rate changes and no amounts were reclassified to earnings.
⁽²⁾: This amount was included in Interest, net on the accompanying Statement of Consolidated Operations.
⁽³⁾: These amounts were included in Fuel on the accompanying Statement of Consolidated Operations.
⁽⁴⁾: These amounts were included in Income tax expense (benefit) on the accompanying Statement of Consolidated Operations.
⁽⁵⁾: A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 4.

Issued

In July 2013, the FASB issued changes to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. These changes require an entity to present an unrecognized tax benefit as a liability in the financial statements if (i) a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or (ii) the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset to settle any additional income taxes that would result from the disallowance of a tax position. Otherwise, an unrecognized tax benefit is required to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. Previously, there was diversity in practice as no explicit guidance existed. These changes become effective for us on January 1, 2014. Management has determined that the adoption of these changes will not have a material impact on the consolidated financial statements.

In February 2013, the FASB issued changes to the accounting for obligations resulting from joint and several liability arrangements. These changes require an entity to measure such obligations for which the total amount of the obligation is fixed at the reporting date as the sum of (i) the amount the reporting entity agreed to pay on the basis of its arrangement among its co- obligors, and (ii) any additional amount the reporting entity expects to pay on behalf of its co-obligors. An entity will also be required to disclose the nature and amount of the obligation as well as other information about those obligations. Examples of obligations subject to these requirements are debt arrangements and settled litigation and judicial rulings. These changes become effective for us on January 1, 2014. We have determined that the adoption of these changes will not have a material impact on the consolidated financial statements.

In March 2013, the FASB issued changes to a parent entity's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. A parent entity is required to release any related cumulative foreign currency translation adjustment from accumulated other comprehensive income into net income in the following circumstances: (i) a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided; (ii) a partial sale of an equity method investment that is a foreign entity; (iii) a partial sale of an equity method investment that is not a foreign entity whereby the partial sale represents a complete or substantially complete liquidation of the foreign entity that held the equity method investment; and (iv) the sale of an investment in a foreign entity. These changes become effective for us on January 1, 2014. We have determined that the adoption of these changes will not have a material impact on the consolidated financial statements.