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Fair Value Measurements
 9 Months Ended
Sep. 30, 2015
Fair Value Disclosures [Abstract]  
Fair Value Measurements

NOTE 11 – FAIR VALUE MEASUREMENTS

The following table presents the carrying amount and fair values of the Company’s assets and liabilities measured on a recurring basis:

 

     September 30, 2015      December 31, 2014  

(in millions)

    Carrying
Amount		      Fair
Value		      Carrying
Amount		      Fair
Value		  

Assets

            

Non-derivatives:

            

Cash and cash equivalents

    $ 127.7       $ 127.7       $ 41.6       $ 41.6   

Short-term investments

      5.1         5.1         4.7         4.7   

Derivatives (Level 1 measurement):

            

Other non-current assets:

            

Foreign currency forward exchange contracts

      0.2         0.2         0.0         0.0   

Liabilities

            

Non-derivatives:

            

Bank overdraft

    $ 7.6       $ 7.6       $ 0.0       $ 0.0   

Long-term debt (including current portion)

      127.0         127.0         139.4         139.4   

Finance leases (including current portion)

      3.1         3.1         2.2         2.2   

Derivatives (Level 1 measurement):

            

Other non-current liabilities:

            

Foreign currency forward exchange contracts

      0.0         0.0         1.8         1.8   

Non-financial liabilities (Level 3 measurement):

            

Acquisition-related contingent consideration (including current portion)

      63.6         63.6         95.2         95.2   

Stock equivalent units

      6.2         6.2         7.2         7.2   

The following methods and assumptions were used to estimate the fair values of financial instruments:

Cash and cash equivalents, short-term investments and bank overdraft: The carrying amount approximates fair value because of the short-term maturities of such instruments.

Long-term debt and finance leases: Long-term debt principally comprises the revolving credit facility, which was entered into in December 2011. Finance leases relate to certain fixed assets in our oilfield specialties business. The carrying amount of long-term debt and finance leases approximates to the fair value.

Derivatives: Foreign currency forward exchange contracts primarily relate to contracts entered into to hedge future known transactions or hedge balance sheet net cash positions. The movements in the carrying amounts and fair values of these contracts are largely due to changes in exchange rates against the U.S. dollar.

Acquisition-related contingent consideration: Contingent consideration payable in cash is discounted to its fair value at each balance sheet date. Where contingent consideration is dependent upon pre-determined financial targets, an estimate of the fair value of the likely consideration payable is made at each balance sheet date. During the quarter the company has reassessed the fair value of the acquisition-related contingent consideration resulting in a credit to the income statement of $11.1 million partially offset by the accretion charge for the quarter of $2.6 million.

Stock equivalent units: The fair values of stock equivalent units are calculated at each balance sheet date using either the Black-Scholes or Monte Carlo method.