84 with some of its European operations. The lenders under these European secured credit facilities also have liens on assets of certain of our European subsidiaries. As a result of these pledges and liens, if the Company fails to meet its payment or other obligations under any of its secured indebtedness, the lenders under the applicable credit agreement would be entitled to foreclose on substantially all of the Company's assets and liquidate these assets. Broadly , cross-default provisions, would permit lenders to cause such indebtedness to become due prior to its stated maturity in the event a default remains unremedied for a period of time under the terms of one or more financing agreements, a change in control or a fundamental change. As of December 31, 2012 and 201 1 , the Company was in compliance with all material debt covenants. 10. Financial Instruments The Company is exposed to various market risks, including changes in interest rates, foreign currency and raw material (commodity) prices. T o manage risks associated with the volatility of these natural business exposures the Company enters into interest rate, commodity and foreign currency derivative agreements, as well as copper and aluminum forward pricing agreements. The Company does not purchase or sell derivative instruments for trading purposes. The Company does not engage in trading activities involving derivative contracts for which a lack of marketplace quotations would necessitate the use of fair value estimation techniques. The Company utilizes interest rate swaps to manage its interest expense exposure by fixing its interest rate on portions of the Company’ s floating rate debt. The Company has entered into interest rate swaps on the Company’ s Spanish T erm Loans, as discussed in Note 9 - Long-T erm Debt. As of December 31, 2012 , the Spanish T erm Loans related interest rate swaps had a notional value of $ 15.3 million which provides for a fixed interest rate of 4.20% , 4.58% , 4.48% for the term loans maturing in February , April and June of 2013 and a fixed interest rate of 1.54 % for the term loan maturing in August 2014 . The Company does not provide or receive any collateral specifically for these contracts. The fair value of these financial derivatives which are designated as and qualify as cash flow hedges are based on quoted market prices which reflect the present values of the dif ference between estimated future variable-rate receipts and future fixed-rate payments. The Company enters into commodity instruments to hedge the purchase of copper , aluminum and lead in future periods and foreign currency exchange contracts principally to hedge the currency fluctuations in certain transactions denominated in foreign currencies, thereby limiting the Company's risk that would otherwise result from changes in exchange rates. Principal transactions hedged during the year were firm sales and purchase commitments. The fair value of foreign currency contracts represents the amount required to enter into of fsetting contracts with similar remaining maturities based on quoted market prices. W e account for these commodity instruments and foreign currency exchange contracts as cash flow or economic hedges. Changes in the fair value of derivatives that are designated as cash flow hedges are recorded in other comprehensive income and reclassified to the income statement when the ef fects of the items being hedged are realized. Changes in the fair value of economic hedges are recognized in current period earnings. Fair V alue of Derivatives Instruments The notional amounts and fair values of derivatives designated as cash flow hedges and derivatives not designated as cash flow hedges at December 31, 2012 and December 31, 201 1 are shown below (in millions).   December 31, 2012 December 31, 2011   Notional Fair Value Notional Fair Value (in millions) Amount Asset (1) Liability (2) Amount Asset (1) Liability (2) Derivatives designated as cash flow hedges:             Interest rate swaps $ 15.3 $ — $ 0.2 $ 32.1 $ — $ 0.6 Commodity futures 22.8 0.2 1.1 216.1 3.8 14.0 Foreign currency exchange 60.7 0.4 0.6 55.4 0.4 1.1     $ 0.6 $ 1.9   $ 4.2 $ 15.7 (in millions)             Derivatives not designated as cash flow hedges:             Commodity futures $ 206.0 $ 3.3 $ 4.9 $ 133.0 $ 2.4 $ 12.6 Foreign currency exchange 253.7 $ 3.2 3.3 321.7 4.1 7.9     $ 6.5 $ 8.2   $ 6.5 $ 20.5 (1) Balance recorded in “Prepaid expenses and other” and “Other non-current assets” (2) Balance recorded in “Accrued liabilities” and “Other liabilities” T able of Contents