Estee Lauder 2015 Annual Report Download - page 104

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THE EST{E LAUDER COMPANIES INC. 101
The following table presents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a
recurring basis as of June 30, 2015:
Level 1 Level 2 Level 3 Total
(In millions)
Assets:
Foreign currency forward contracts $ — $ 43.1 $ — $ 43.1
Available-for-sale securities:
U.S. government and agency securities — 265.8 — 265.8
Foreign government and agency securities — 23.9 — 23.9
Corporate notes and bonds — 182.4 — 182.4
Time deposits — 410.8 — 410.8
Other securities — 34.9 — 34.9
Total $ — $960.9 $ — $960.9
Liabilities:
Foreign currency forward contracts $ — $ 8.3 $ — $ 8.3
Interest rate swap contracts — 0.2 — 0.2
Contingent consideration — — 159.3 159.3
Total $ — $ 8.5 $159.3 $167.8
The following table presents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a
recurring basis as of June 30, 2014:
Level 1 Level 2 Level 3 Total
(In millions)
Assets:
Foreign currency forward contracts $ — $ 4.2 $ — $ 4.2
Available-for-sale securities 7.6 — — 7.6
Total $7.6 $ 4.2 $ — $11.8
Liabilities:
Foreign currency forward contracts $ — $19.1 $ — $19.1
The estimated fair values of the Company’s financial instruments are as follows:
JUNE 30, 2015 JUNE 30, 2014
Carrying Amount Fair Value Carrying Amount Fair Value
(In millions)
Nonderivatives
Cash and cash equivalents $1,021.4 $1,021.4 $1,629.1 $1,629.1
Available-for-sale securities 917.8 917.8 7.6 7.6
Note receivable — — 8.4 8.5
Current and long-term debt 1,637.3 1,697.5 1,343.1 1,428.3
Additional purchase price payable 37.0 37.0 — —
Contingent consideration 159.3 159.3 — —
Derivatives
Foreign currency forward contracts — asset (liability) 34.8 34.8 (14.9) (14.9)
Interest rate swap contracts — asset (liability) (0.2) (0.2) — —
The following methods and assumptions were used to
estimate the fair value of the Company’s financial instru-
ments for which it is practicable to estimate that value:
Cash and cash equivalents — Cash and all highly-liquid
securities with original maturities of three months or less
are classified as cash and cash equivalents, primarily con-
sisting of cash deposits in interest bearing accounts,
money market funds and time deposits. The carrying
amount approximates fair value, primarily because of the
short maturity of cash equivalent instruments.
Available-for-sale securities —Available-for-sale securities
classified within Level 1 of the valuation hierarchy are gen-
erally comprised of mutual funds and are valued using
quoted market prices on an active exchange. Available-
for-sale securities classified within Level 2 of the valuation
hierarchy are valued using third-party pricing services and