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82
Fair Value Hierarchy
The three levels of the fair value hierarchy are:
Level 1 -- Quoted prices (unadjusted) in active markets for identical, unrestricted assets or liabilities that the Company has
the ability to access at the measurement date;
Level 2 -- Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or
indirectly; and
Level 3 -- Unobservable inputs used in valuations in which there is little market activity for the asset or liability at the
measurement date.
Fair value measurements of assets and liabilities are assigned a level within the fair value hierarchy based on the lowest level of any
input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
December 31, 2013 December 31, 2012
Based on Based on
Quoted Quoted
prices in Other prices in Other
active observable Unobservable
active observable Unobservable
Markets Inputs inputs
markets inputs inputs
Fair value (Level 1) (Level 2) (Level 3) Fair value (Level 1) (Level 2) (Level 3)
Assets measured at fair value on a recurring basis:
Cash equivalents (1)
Money market funds $ 162.6 $ – $ 162.6 $ – $ 102.3 $ – $ 102.3 $ –
U.S. government and agency securities 12.5 – 12.5 –
6.0 – 6.0 –
Corporate debt securities – – – –
1.5 – 1.5 –
Available-for-sale marketable securities
Government & agency debt securities 345.8 251.0 94.8 – 334.8 244.2 90.6 –
Corporate debt securities 362.1 7.5 354.6 – 302.1 14.4 282.5 5.2
Asset-backed and mortgage-backed securities 73.6 – 71.8 1.8 56.5 – 53.0 3.5
Total available-for-sale marketable securities - ST 781.5 258.5 521.2 1.8 693.4 258.6 426.1 8.7
Auction rate securities - municipal debt 3.4 – – 3.4 3.3 – – 3.3
Auction rate securities - preferred 3.3 – – 3.3 3.0 – – 3.0
Total available-for-sale marketable securities - LT 6.7 – – 6.7 6.3 – – 6.3
Foreign currency derivatives (2) 0.1 – 0.1 – 0.2 – 0.2 –
Total $ 963.4 $ 258.5 $ 696.4 $ 8.5 $ 809.7 $ 258.6 $ 536.1 $ 15.0
Liabilities measured at fair value on a recurring
basis:
Foreign currency derivatives (2) $ 0.2 $ – $ 0.2 $ – $ 0.6 $ – $ 0.6 $ –
Forward starting interest rate swap – – – – 1.4 – 1.4 –
Total $ 0.2 $ – $ 0.2 $ – $ 2.0 $ – $ 2.0 $ –
(1) Included in Cash and cash equivalents on the Consolidated Statements of Financial Position.
(2) Foreign currency derivative assets and foreign currency derivative liabilities are included in Prepaid expenses and other current assets and Accrued liabilities, respectively, on the Consolidated Statements of Financial
Position. Refer to Note 18 of the Notes to Consolidated Financial Statements for disclosure of derivative assets and liabilities on a gross basis.
The Company's policy is to consider all highly liquid investments with an original maturity of three months or less at the Company's
date of purchase to be cash equivalents. The amortized cost of these investments closely approximates fair value in accordance with
the Company's policy regarding cash equivalents. Fair value of these instruments is readily determinable using the methods described
below for marketable securities and money market funds.
The following table presents additional information about Level 3 assets measured at fair value on a recurring basis for the year ended
December 31, 2013:
82