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beatandraise.com

2.2.0.25falsefalse110 - Disclosure - Summary of Significant Accounting Policiestruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010 USD ($) USD ($) / shares $eol_PE2163----1010-K0023_STD_365_20101231_0http://www.sec.gov/CIK0000063908duration2010-01-01T00:00:002010-12-31T00:00:00iso4217_USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170pureStandardhttp://www.xbrl.org/2003/instancepure0YearStandardhttp://www.mcdonalds.com/20101231Yearmcd0sharesStandardhttp://www.xbrl.org/2003/instanceshares0iso4217_USD_per_sharesDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instanceshares0USDUSD$5false0us-gaap_SignificantAccountingPoliciesTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<div> Summary of Significant Accounting Policies NATURE OF BUSINESS The Company franchises and operates McDonald’s restaurants in the global restaurant industry. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchise arrangements, and foreign affiliates and developmental licensees under license agreements. The following table presents restaurant information by ownership type:   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="50%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom" nowrap="nowrap">Restaurants at December 31,</td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom" colspan="2" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom">    </td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom" colspan="2" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom">    </td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom" colspan="2" align="right">2008</td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> </tr> <tr> <td valign="top"> Conventional franchised </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">19,279</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">19,020</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">18,402</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Developmental licensed </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,485</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,160</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,926</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Foreign affiliated </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">3,574</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">4,036</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">4,137</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Franchised </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">26,338</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">26,216</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">25,465</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Company-operated </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">6,399</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">6,262</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">6,502</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Systemwide restaurants </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">32,737</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">32,478</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">31,967</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> </table> CONSOLIDATION The consolidated financial statements include the accounts of the Company and its subsidiaries. Investments in affiliates owned 50% or less (primarily McDonald’s Japan) are accounted for by the equity method. In June 2009, the Financial Accounting Standards Board (FASB) issued amendments to the guidance on variable interest entities and consolidation, codified primarily in the Consolidation Topic of the FASB Accounting Standards Codification (ASC). This guidance modifies the method for determining whether an entity is a variable interest entity as well as the methods permitted for determining the primary beneficiary of a variable interest entity. In addition, this guidance requires ongoing reassessments of whether a company is the primary beneficiary of a variable interest entity and enhanced disclosures related to a company’s involvement with a variable interest entity. The Company adopted this guidance as of January 1, 2010. On an ongoing basis, the Company evaluates its business relationships such as those with franchisees, joint venture partners, developmental licensees, suppliers, and advertising cooperatives to identify potential variable interest entities. Generally, these businesses qualify for a scope exception under the consolidation guidance. The Company has concluded that consolidation of any such entity is not appropriate for the periods presented. As a result, the adoption did not have any impact on the Company’s consolidated financial statements. ESTIMATES IN FINANCIAL STATEMENTS The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. REVENUE RECOGNITION The Company’s revenues consist of sales by Company-operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and foreign affiliates. Sales by Company-operated restaurants are recognized on a cash basis. The Company presents sales net of sales tax and other sales-related taxes. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales with minimum rent payments, and initial fees. Revenues from restaurants licensed to foreign affiliates and developmental licensees include a royalty based on a percent of sales, and may include initial fees. Continuing rent and royalties are recognized in the period earned. Initial fees are recognized upon opening of a restaurant or granting of a new franchise term, which is when the Company has performed substantially all initial services required by the franchise arrangement. FOREIGN CURRENCY TRANSLATION Generally, the functional currency of operations outside the U.S. is the respective local currency. ADVERTISING COSTS Advertising costs included in operating expenses of Company-operated restaurants primarily consist of contributions to advertising cooperatives and were (in millions): 2010–$687.0; 2009–$650.8; 2008–$703.4. Production costs for radio and television advertising are expensed when the commercials are initially aired. These production costs, primarily in the U.S., as well as other marketing-related expenses included in selling, general & administrative expenses were (in millions): 2010–$94.5; 2009–$94.7; 2008–$79.2. In addition, significant advertising costs are incurred by franchisees through contributions to advertising cooperatives in individual markets. SHARE-BASED COMPENSATION Share-based compensation includes the portion vesting of all share-based payments granted based on the grant date fair value. Share-based compensation expense and the effect on diluted earnings per common share were as follows:   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="63%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom" nowrap="nowrap">In millions, except per share data</td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom" colspan="2" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom" colspan="2" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom" colspan="2" align="right">2008</td> <td style="BORDER-BOTTOM: #000000 1px dotted; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> </tr> <tr> <td valign="top"> Share-based compensation expense </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">83.1</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">112.9</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">112.5</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> After tax </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">56.2</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">76.1</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">75.1</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Earnings per common share-diluted </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">0.05</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">0.07</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">0.07</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> </table> Compensation expense related to share-based awards is generally amortized on a straight-line basis over the vesting period in selling, general & administrative expenses in the Consolidated statement of income. As of December 31, 2010, there was $90.4 million of total unrecognized compensation cost related to nonvested share-based compensation that is expected to be recognized over a weighted-average period of 2.0 years. The fair value of each stock option granted is estimated on the date of grant using a closed-form pricing model. The following table presents the weighted-average assumptions used in the option pricing model for the 2010, 2009 and 2008 stock option grants. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. Expected stock price volatility is generally based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected dividend yield is based on the Company’s most recent annual dividend payout. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with a term equal to the expected life.   Weighted-average assumptions     <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="58%"></td> <td valign="bottom" width="10%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2008   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> </tr> <tr> <td valign="top"> Expected dividend yield </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3.5</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3.2</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.6%</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Expected stock price volatility </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">22.1</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">24.4</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">24.9%</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Risk-free interest rate </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.8</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.0</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3.0%</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Expected life of options In years </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">6.2</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">6.2</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">6.2   </td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Fair value per option granted </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">9.90</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">9.66</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">11.85   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> </table>   PROPERTY AND EQUIPMENT Property and equipment are stated at cost, with depreciation and amortization provided using the straight-line method over the following estimated useful lives: buildings–up to 40 years; leasehold improvements–the lesser of useful lives of assets or lease terms, which generally include option periods; and equipment–three to 12 years.       GOODWILL Goodwill represents the excess of cost over the net tangible assets and identifiable intangible assets of acquired restaurant businesses. The Company’s goodwill primarily results from purchases of McDonald’s restaurants from franchisees and ownership increases in subsidiaries or affiliates, and it is generally assigned to the reporting unit expected to benefit from the synergies of the combination. If a Company-operated restaurant is sold within 24 months of acquisition, the goodwill associated with the acquisition is written off in its entirety. If a restaurant is sold beyond 24 months from the acquisition, the amount of goodwill written off is based on the relative fair value of the business sold compared to the reporting unit (defined as each individual country). The Company conducts goodwill impairment testing in the fourth quarter of each year or whenever an indicator of impairment exists. If an indicator of impairment exists (e.g., estimated earnings multiple value of a reporting unit is less than its carrying value), the goodwill impairment test compares the fair value of a reporting unit, generally based on discounted future cash flows, with its carrying amount including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is measured as the difference between the implied fair value of the reporting unit’s goodwill and the carrying amount of goodwill. Historically, goodwill impairment has not significantly impacted the consolidated financial statements. The following table presents the 2010 activity in goodwill by segment:     <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="60%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">In millions</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">U.S.</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Europe</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" nowrap="nowrap" align="right">APMEA(1)</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Other Countries & Corporate(2)</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Consolidated</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> </tr> <tr> <td valign="top"> Balance at December 31, 2009 </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,151.6</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">790.7</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">$346.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">$136.5</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">$2,425.2</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Net restaurant purchases (sales) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">60.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">23.0</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.2</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">48.5</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">134.1</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Acquisition of subsidiaries/affiliates </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">9.7</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">9.7</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Currency translation </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">(28.2</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">36.4</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">8.9</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">17.1</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Balance at December 31, 2010 </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">1,212.0</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">785.5</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">$385.0</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">$203.6</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">$2,586.1</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="2%" align="left">(1)</td> <td valign="top" align="left">APMEA represents Asia/Pacific, Middle East and Africa.</td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="2%" align="left">(2)</td> <td valign="top" align="left">Other Countries & Corporate represents Canada, Latin America and Corporate.</td> </tr> </table>     LONG-LIVED ASSETS Long-lived assets are reviewed for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of annually reviewing McDonald’s restaurant assets for potential impairment, assets are initially grouped together at a television market level in the U.S. and at a country level for each of the international markets. The Company manages its restaurants as a group or portfolio with significant common costs and promotional activities; as such, an individual restaurant’s cash flows are not generally independent of the cash flows of others in a market. If an indicator of impairment (e.g., negative operating cash flows for the most recent trailing 24-month period) exists for any grouping of assets, an estimate of undiscounted future cash flows produced by each individual restaurant within the asset grouping is compared to its carrying value. If an individual restaurant is determined to be impaired, the loss is measured by the excess of the carrying amount of the restaurant over its fair value as determined by an estimate of discounted future cash flows. Losses on assets held for disposal are recognized when management and the Board of Directors, as required, have approved and committed to a plan to dispose of the assets, the assets are available for disposal, the disposal is probable of occurring within 12 months, and the net sales proceeds are expected to be less than its net book value, among other factors. Generally, such losses relate to restaurants that have closed and ceased operations as well as other assets that meet the criteria to be considered “available for sale”. FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis, and certain non-financial assets and liabilities on a nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows:   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="11" align="left">•</td> <td valign="top" width="1"> </td> <td valign="top" align="left"> Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. </td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="11" align="left">•</td> <td valign="top" width="1"> </td> <td valign="top" align="left"> Level 2 – inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. </td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="11" align="left">•</td> <td valign="top" width="1"> </td> <td valign="top" align="left"> Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. </td> </tr> </table>   Certain of the Company’s derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves, option volatilities and currency rates, classified as Level 2 within the valuation hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or the Company.   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="11" align="left">•</td> <td valign="top" width="1"> </td> <td valign="top" align="left"> Certain Financial Assets and Liabilities Measured at Fair Value </td> </tr> </table> The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance:   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="47%"></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="16" nowrap="nowrap">December 31, 2010</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">In millions</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Level 1</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Level 2</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Level 3</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Carrying Value</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> </tr> <tr> <td valign="top"> Cash equivalents </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">722.5</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">722.5</td> <td valign="bottom" nowrap="nowrap"> </td> </tr> <tr> <td valign="top"> Investments </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">131.6</td> <td valign="bottom" nowrap="nowrap">*</td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">131.6</td> <td valign="bottom" nowrap="nowrap"> </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Derivative receivables </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">104.4</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">*</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">88.5</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">192.9</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap"> </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total assets at fair value </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">958.5</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">88.5</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">1,047.0</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap"> </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Derivative payables </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right"> (8.4</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">   (8.4</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total liabilities at fair value </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right"> (8.4</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">   (8.4</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> </tr> </table>   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="46%"></td> <td valign="bottom" width="10%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="10%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="16" nowrap="nowrap">December 31, 2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">In millions</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Level 1</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Level 2</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Level 3</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Carrying Value</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> </tr> <tr> <td valign="top"> Cash equivalents </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">455.8</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">455.8</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Investments </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">115.7</td> <td valign="bottom" nowrap="nowrap">*</td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">115.7</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Derivative receivables </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">79.6</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">*</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">94.5</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">174.1</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total assets at fair value </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">651.1</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">94.5</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">745.6</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Derivative payables </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right"> (7.0</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">   (7.0</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total liabilities at fair value </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right"> (7.0</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">   (7.0</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="17" align="left">*</td> <td valign="top" align="left">Includes long-term investments and derivatives that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans.</td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="11" align="left">•</td> <td valign="top" width="1"> </td> <td valign="top" align="left"> Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis </td> </tr> </table> Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). At December 31, 2010, no material fair value adjustments or fair value measurements were required for non-financial assets or liabilities.   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="11" align="left">•</td> <td valign="top" width="1"> </td> <td valign="top" align="left"> Certain Financial Assets and Liabilities not Measured at Fair Value </td> </tr> </table> At December 31, 2010, the fair value of the Company’s debt obligations was estimated at $12.5 billion, compared to a carrying amount of $11.5 billion. This fair value was estimated using various pricing models or discounted cash flow analyses that incorporated quoted market prices and are similar to Level 2 inputs within the valuation hierarchy. The carrying amount for both cash equivalents and notes receivable approximate fair value. FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency fluctuations. The Company uses foreign currency denominated debt and derivative instruments to mitigate the impact of these changes. The Company does not use derivatives with a level of complexity or with a risk higher than the exposures to be hedged and does not hold or issue derivatives for trading purposes. The Company documents its risk management objective and strategy for undertaking hedging transactions, as well as all relationships between hedging instruments and hedged items. The Company’s derivatives that are designated as hedging instruments consist mainly of interest rate exchange agreements, forward foreign currency exchange agreements and foreign currency options. Interest rate exchange agreements are entered into to manage the interest rate risk associated with the Company’s fixed and floating-rate borrowings. Forward foreign currency exchange agreements and foreign currency options are entered into to mitigate the risk that forecasted foreign currency cash flows (such as royalties denominated in foreign currencies) will be adversely affected by changes in foreign currency exchange rates. Certain foreign currency denominated debt is used, in part, to protect the value of the Company’s investments in certain foreign subsidiaries and affiliates from changes in foreign currency exchange rates. The Company also enters into certain derivatives that are not designated as hedging instruments. The Company has entered into equity derivative contracts to hedge market-driven changes in certain of its supplemental benefit plan liabilities. Changes in the fair value of these derivatives are recorded in selling, general & administrative expenses together with the changes in the supplemental benefit plan liabilities. In addition, the Company uses forward foreign currency exchange agreements and foreign currency exchange agreements to mitigate the change in fair value of certain foreign currency denominated assets and liabilities. Since these derivatives are not designated as hedging instruments, the changes in the fair value of these derivatives are recognized immediately in nonoperating (income) expense together with the currency gain or loss from the hedged balance sheet position. A portion of the Company’s foreign currency options (more fully described in the Cash Flow Hedging Strategy section) are undesignated as hedging instruments as the underlying foreign currency royalties are earned. All derivative instruments designated as hedging instruments are classified as fair value, cash flow or net investment hedges. All derivatives (including those not designated as hedging instruments) are recognized on the Consolidated balance sheet at fair value and classified based on the instruments’ maturity date. Changes in the fair value measurements of the derivative instruments are reflected as adjustments to other comprehensive income (OCI) and/or current earnings. The following table presents the fair values of derivative instruments included on the Consolidated balance sheet as of December 31, 2010 and 2009:   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="55%"></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="1%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom" colspan="18" align="center">Asset Derivatives</td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom" colspan="14" align="center">Liability Derivatives</td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">In millions</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2"> Balance Sheet Classification </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2"> Balance Sheet Classification </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> </tr> <tr> <td valign="top"> Derivatives designated as hedging instruments </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Foreign currency </td> <td valign="bottom"> </td> <td valign="bottom">   </td> <td valign="bottom">Prepaid expenses and other current assets</td> <td valign="bottom" nowrap="nowrap">     </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">7.5</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">13.5</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">   </td> <td valign="bottom">Accrued payroll and other liabilities</td> <td valign="bottom" nowrap="nowrap">     </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(4.6</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(0.1</td> <td valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td valign="top"> Interest rate </td> <td valign="bottom"> </td> <td valign="bottom">   </td> <td valign="bottom">Prepaid expenses and other current assets</td> <td valign="bottom" nowrap="nowrap">     </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">0.5</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Foreign currency </td> <td valign="bottom"> </td> <td valign="bottom">   </td> <td valign="bottom">Miscellaneous other assets</td> <td valign="bottom" nowrap="nowrap">    </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">5.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Interest rate </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">    </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom"> Miscellaneous other assets</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">    </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">72.1</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">67.3</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">    </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom"> Other long-term liabilities</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">(0.3</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">(3.4</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total derivatives designated as hedging instruments </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">80.1</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">87.6</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(4.9</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(3.5</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td valign="top"> Derivatives not designated as hedging instruments </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Foreign currency </td> <td valign="bottom"> </td> <td valign="bottom">   </td> <td valign="bottom">Prepaid expenses and other current assets</td> <td valign="bottom" nowrap="nowrap">     </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">6.0</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">9.3</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">   </td> <td valign="bottom">Accrued payroll and other liabilities</td> <td valign="bottom" nowrap="nowrap">     </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(3.8</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(5.4</td> <td valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td valign="top"> Equity </td> <td valign="bottom"> </td> <td valign="bottom">   </td> <td valign="bottom">Prepaid expenses and other current assets</td> <td valign="bottom" nowrap="nowrap">     </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">104.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Equity </td> <td valign="bottom"> </td> <td valign="bottom">   </td> <td valign="bottom">Miscellaneous other assets</td> <td valign="bottom" nowrap="nowrap">     </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">79.6</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Foreign currency </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">    </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom"> Miscellaneous other assets</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">2.7</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">    </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom"> Other long-term liabilities</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">(0.5</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total derivatives not designated as hedging instruments </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">113.1</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">88.9</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(3.8</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(5.9</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total derivatives1 </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">193.2</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">176.5</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(8.7</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(9.4</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="2%" align="left">1</td> <td valign="top" align="left">The fair value of derivatives is presented on a gross basis. Accordingly, the 2010 and 2009 total asset and liability fair values do not agree with the values provided in the Fair Value Measurements note, because that disclosure reflects netting adjustments of $0.3 million and $2.4 million.</td> </tr> </table> The following table presents the pretax amounts affecting income and OCI for the years ended December 31, 2010 and 2009, respectively:   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="38%"></td> <td valign="bottom" width="3%"></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom" nowrap="nowrap">In millions</td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom" colspan="6">  </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom" colspan="6">  </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom" colspan="6">  </td> <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" valign="bottom"> </td> </tr> <tr> <td height="8"></td> <td height="8" colspan="2"></td> <td height="8" colspan="8"></td> <td height="8" colspan="2"></td> <td height="8" colspan="8"></td> <td height="8" colspan="2"></td> <td height="8" colspan="8"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" align="center"> Derivatives in Fair Value Hedging Relationships </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">(Gain) Loss Recognized in Income on Derivative</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">         </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" align="center">        </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" colspan="5" align="center">Hedged Items in Fair Value Hedging Relationships </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2">          </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">(Gain) Loss Recognized in Income on Related Hedged Items</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">         </td> </tr> <tr> <td valign="bottom">  </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Interest rate </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(7.0</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">17.3</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" colspan="5">Fixed-rate debt</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">7.0</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(17.3</td> <td valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td height="8"></td> <td height="8" colspan="2"></td> <td height="8" colspan="8"></td> <td height="8" colspan="2"></td> <td height="8" colspan="8"></td> <td height="8" colspan="2"></td> <td height="8" colspan="8"></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" align="center"> Derivatives in Cash Flow Hedging Relationships </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">       </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">(Gain) Loss Recognized in Accumulated OCI on Derivative (Effective Portion)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">            </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">        </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="right">(Gain) Loss             Reclassified from         Accumulated OCI into     Income  (Effective Portion) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">             </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">          </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">(Gain) Loss Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">                </td> </tr> <tr> <td valign="bottom">  </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">                         2010</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Foreign currency </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(11.2</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">3.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">$(13.4</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(48.3</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">25.1</td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">27.0</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Interest rate(1) </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">(2.1</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">(0.9</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">(2.1</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">(0.3</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(11.2</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">1.3</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">$(14.3</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(50.4</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">24.8</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">27.0</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" align="center">Net Investment Hedging Relationships</td> <td valign="bottom"> </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="3" align="center"> (Gain) Loss Recognized in Accumulated OCI on Derivative (Effective Portion) </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" align="center"> Derivatives Not Designated as Hedging Instruments </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">      </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">(Gain) Loss Recognized in Income on Derivative </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">          </td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2009</td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Foreign currency denominated debt </td> <td valign="bottom"> </td> <td valign="top"></td> <td valign="bottom"> </td> <td valign="bottom" align="right">$144.3</td> <td valign="bottom"> </td> <td valign="bottom" align="right">$51.3</td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="top"> Foreign currency </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(16.4</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(12.2</td> <td valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Foreign currency derivatives </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">4.3</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Equity(2) </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">(18.8</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">(2.4</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">$148.6</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">$51.3</td> <td valign="bottom"> </td> <td valign="bottom"></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(35.2</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(14.6</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">)</td> </tr> </table> (Gains) losses recognized in income on derivatives are recorded in nonoperating (income) expense unless otherwise noted.   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="2%" align="left">(1)</td> <td valign="top" align="left">The amount of (gain) loss reclassified from accumulated OCI into income is recorded in interest expense.</td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="2%" align="left">(2)</td> <td valign="top" align="left">The amount of (gain) loss recognized in income on the derivatives used to hedge the supplemental benefit plan liabilities is recorded in selling, general & administrative expenses.</td> </tr> </table>     <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="11" align="left">•</td> <td valign="top" width="1"> </td> <td valign="top" align="left"> Fair Value Hedging Strategy </td> </tr> </table> The Company enters into fair value hedges to reduce the exposure to changes in the fair values of certain liabilities. The fair value hedges the Company enters into consist of interest rate exchange agreements which convert a portion of its fixed-rate debt into floating-rate debt. All of the Company’s interest rate exchange agreements meet the shortcut method requirements. Accordingly, changes in the fair values of the interest rate exchange agreements are exactly offset by changes in the fair value of the underlying debt. No ineffectiveness has been recorded to net income related to interest rate exchange agreements designated as fair value hedges for the year ended December 31, 2010. A total of $2.3 billion of the Company’s outstanding fixed-rate debt was effectively converted to floating-rate debt resulting from the use of interest rate exchange agreements.   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="11" align="left">•</td> <td valign="top" width="1"> </td> <td valign="top" align="left"> Cash Flow Hedging Strategy </td> </tr> </table> The Company enters into cash flow hedges to reduce the exposure to variability in certain expected future cash flows. The types of cash flow hedges the Company enters into include interest rate exchange agreements, forward foreign currency exchange agreements and foreign currency options. To protect against the reduction in value of forecasted foreign currency cash flows (such as royalties denominated in foreign currencies), the Company uses forward foreign currency exchange agreements and foreign currency options to hedge a portion of anticipated exposures. When the U.S. dollar strengthens against foreign currencies, the decline in present value of future foreign denominated royalties is offset by gains in the fair value of the forward foreign currency exchange agreements and/or foreign currency options. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign denominated royalties is offset by losses in the fair value of the forward foreign currency exchange agreements and/or foreign currency options. Although the fair value changes in the foreign currency options may fluctuate over the period of the contract, the Company’s total loss on a foreign currency option is limited to the upfront premium paid for the contract. However, the potential gains on a foreign currency option are unlimited as the settlement value of the contract is based upon the difference between the exchange rate at inception of the contract and the spot exchange rate at maturity. In limited situations, the Company uses foreign currency option collars, which limit the potential gains and lower the upfront premium paid, to protect against currency movements. The hedges typically cover the next 12-15 months for certain exposures and are denominated in various currencies. As of December 31, 2010, the Company had derivatives outstanding with an equivalent notional amount of $434.4 million that were used to hedge a portion of forecasted foreign currency denominated royalties. The Company excludes the time value of foreign currency options, as well as the discount or premium points on forward foreign currency exchange agreements, from its effectiveness assessment on its cash flow hedges. As a result, changes in the fair value of the derivatives due to these components, as well as the ineffectiveness of the hedges, are recognized in earnings currently. The effective portion of the gains or losses on the derivatives is reported in the deferred hedging adjustment component of OCI in shareholders’ equity and reclassified into earnings in the same period or periods in which the hedged transaction affects earnings. The Company recorded after tax adjustments related to cash flow hedges to the deferred hedging adjustment component of accumulated OCI in shareholders’ equity. The Company recorded a net decrease of $1.5 million and $31.5 million for the years ended December 31, 2010 and 2009, respectively. Based on interest rates and foreign currency exchange rates at December 31, 2010, no significant amount of the $15.0 million in cumulative deferred hedging gains, after tax, at December 31, 2010, will be recognized in earnings over the next 12 months as the underlying hedged transactions are realized.   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="11" align="left">•</td> <td valign="top" width="1"> </td> <td valign="top" align="left"> Hedge of Net Investment in Foreign Operations Strategy </td> </tr> </table> The Company primarily uses foreign currency denominated debt to hedge its investments in certain foreign subsidiaries and affiliates. Realized and unrealized translation adjustments from these hedges are included in shareholders’ equity in the foreign currency translation component of OCI and offset translation adjustments on the underlying net assets of foreign subsidiaries and affiliates, which also are recorded in OCI. As of December 31, 2010, a total of $3.5 billion of the Company’s outstanding foreign currency denominated debt was designated to hedge investments in certain foreign subsidiaries and affiliates.   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="11" align="left">•</td> <td valign="top" width="1"> </td> <td valign="top" align="left"> Credit Risk </td> </tr> </table> The Company is exposed to credit-related losses in the event of non-performance by the counterparties to its hedging instruments. The counterparties to these agreements consist of a diverse group of financial institutions. The Company continually monitors its positions and the credit ratings of its counterparties and adjusts positions as appropriate. The Company did not have significant exposure to any individual counterparty at December 31, 2010 and has master agreements that contain netting arrangements. Some of these agreements also require each party to post collateral if credit ratings fall below, or aggregate exposures exceed, certain contractual limits. At December 31, 2010, neither the Company nor its counterparties were required to post collateral on any derivative position, other than on hedges of certain of the Company’s supplemental benefit plan liabilities where its counterparties were required to post collateral on their liability positions. INCOME TAX UNCERTAINTIES The Company, like other multi-national companies, is regularly audited by federal, state and foreign tax authorities, and tax assessments may arise several years after tax returns have been filed. Accordingly, tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may be recorded depending on management’s assessment of how the tax position will ultimately be settled. The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes. PER COMMON SHARE INFORMATION Diluted earnings per common share is calculated using net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation calculated using the treasury stock method, of (in millions of shares): 2010–14.3; 2009–15.2; 2008– 19.4. Stock options that were not included in diluted weighted-average shares because they would have been antidilutive were (in millions of shares): 2010–0.0; 2009–0.7; 2008–0.6. The Company has elected to exclude the pro forma deferred tax asset associated with share-based compensation in earnings per share. STATEMENT OF CASH FLOWS The Company considers short-term, highly liquid investments with an original maturity of 90 days or less to be cash equivalents. SUBSEQUENT EVENTS The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. There were no subsequent events that required recognition or disclosure. </div>Summary of Significant Accounting Policies NATURE OF BUSINESS The Company franchises and operates McDonald’s restaurants in the global restaurantfalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringThis element may be used to describe all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 22 -Paragraph 8 falsefalseSummary of Significant Accounting Policies11Summary of Significant Accounting PoliciesUnKnownUnKnownUnKnownUnKnownfalsetrue