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77
the Company’s policy regarding cash equivalents. Fair value of these instruments is readily determinable using the methods described
below for money market funds.
The Company liquidated its marketable securities portfolio entirely in 2015 in order to partially fund the acquisition of Kofax Limited
(“Kofax”). Refer to Note 4 of the Notes to Consolidated Financial Statements for more information on the acquisition of Kofax.
The following table presents additional information about Level 3 assets measured at fair value on a recurring basis for the year ended
December 31, 2015:
Available-for-sale marketable securities
Twelve Months Ended December 31, 2015
Total Level 3
AB and MB
securities
securities
Balance, beginning of period
$
1.4
$
1.4
Realized and unrealized gains/(losses) included in earnings (1)
0.3
0.3
Unrealized gains/(losses) included in OCI - All other
(0.3)
(0.3)
Sales
(1.3)
(1.3)
Paydowns
(0.1)
(0.1)
Balance, end of period
$
–
$
–
OCI = Other comprehensive income
AB = Asset-backed
MB = Mortgage-backed
(1) Included in Other expense (income), net on the Consolidated Statements of Earnings
For purposes of comparison, the following table presents additional information about Level 3 assets measured at fair value on a
recurring basis for the year ended December 31, 2014:
Available-for-sale marketable securities
ARS - muni
ARS -
Twelve Months Ended December 31, 2014
Total Level 3
AB and MB
debt
preferred
securities
securities
securities
securities
Balance, beginning of period
$
8.5
$
1.8
$
3.4
$
3.3
Realized and unrealized gains/(losses) included in earnings (1)
0.3
0.3
–
–
Unrealized gains/(losses) included in OCI - OTTI securities
(0.1)
(0.1)
–
–
Unrealized gains/(losses) included in OCI - All other
0.7
–
–
0.7
Purchases
1.6
1.6
–
–
Sales and redemptions
(4.6)
(0.6)
–
(4.0)
Paydowns
(0.3)
(0.3)
–
–
Transfers in (2)
0.3
0.3
–
–
Transfers out (2)
(5.0)
(1.6)
(3.4)
–
Balance, end of period
$
1.4
$
1.4
$
–
$
–
OCI = Other comprehensive income
OTTI = Other than temporary impairment
AB = Asset-backed
MB = Mortgage-backed
ARS = Auction rate security
(1) Included in Other expense (income), net on the Consolidated Statements of Earnings
(2) Transfers into Level 3 were on a gross basis, and resulted from the Company being unable to corroborate the prices of these securities with a sufficient level of
observable market data to maintain Level 2 classification. Transfers out of Level 3 were on a gross basis, and resulted from the Company being able to obtain
information demonstrating that the prices were observable in the market during the period shown.
Of the realized and unrealized losses included in earnings during the year ended December 31, 2014, none were related to Level 3
securities held by the Company at December 31, 2014.
Transfers
2015
There were no transfers between levels of the fair value hierarchy during 2015.