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FORM 10-K
Fair Value Measurements Using
Description Carrying
Amount
Quoted
Prices
in
Active
Markets
for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Fair
Value
Long-term debt, including current portion
December 31, 2010 ................................. $(6,788.7) $ $(7,030.0) $ $(7,030.0)
December 31, 2009 ................................. (6,655.0) (6,827.8) (6,827.8)
Fair Value Measurements Using
Description Carrying
Amount
Quoted
Prices
in
Active
Markets
for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Fair
Value
December 31, 2010
Risk-management instruments
Interest rate contracts designated as hedging
instruments
Sundry ........................................ $ 278.3 $ $ 278.3 $ $ 278.3
Foreign exchange contracts not designated as hedging
instruments
Other receivables ............................... 13.7 13.7 13.7
Other current liabilities .......................... (31.6) (31.6) (31.6)
Equity contracts designed as hedging instruments
Other current liabilities .......................... (35.6) (35.6) (35.6)
December 31, 2009
Risk-management instruments
Interest rate contracts designated as hedging
instruments
Sundry ........................................ $ 134.9 $ $ 134.9 $ $ 134.9
Other noncurrent liabilities ....................... (6.2) (6.2) (6.2)
Foreign exchange contracts not designated as hedging
instruments
Other receivables ............................... 8.8 8.8 8.8
Other current liabilities .......................... (10.7) (10.7) (10.7)
The fair value of the contingent consideration liability related to the Avid and Alnara acquisitions (see Note 3), a Level
3 measurement in the fair value hierarchy, was $163.5 million as of December 31, 2010.
We determine fair values based on a market approach using quoted market values, significant other observable
inputs for identical or comparable assets or liabilities, or discounted cash flow analyses. The fair value of equity
method and other investments is not readily available.
Approximately $1.40 billion of our investments in debt securities, measured at fair value, mature within five years.
A summary of the fair value of available-for-sale securities in an unrealized gain or loss position and the amount of
unrealized gains and losses (pretax) in accumulated other comprehensive loss at December 31 follows:
2010 2009
Unrealized gross gains ................................................................ $ 262.6 $222.4
Unrealized gross losses ............................................................... 61.1 101.7
Fair value of securities in an unrealized gain position ....................................... 1,031.8 579.8
Fair value of securities in an unrealized loss position ....................................... 758.1 449.4
Other-than-temporary impairment losses on fixed income securities of $12.0 million and $22.4 million were
recognized in the statement of operations for the years ended December 31, 2010 and 2009, respectively. These
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