First Data 2011 Annual Report Download - page 91

Municipal paper was valued under a market approach using observable inputs including maturity date, issue date, credit rating, current
commercial paper rates and settlement date.
The Company's experience with these types of investments and the expectations of the current investments held is that they will
be satisfied at the current carrying amount. These securities were classified as Level 2.
Derivative financial instruments. The Company uses derivative instruments to mitigate certain risks. The Company's
derivatives are not exchange listed and therefore the fair value is estimated under an income approach using Bloomberg analytics
models that are based on readily observable market inputs. These models reflect the contractual terms of the derivatives, such as
notional value and expiration date, as well as market-based observables including interest and foreign currency exchange rates, yield
curves and the credit quality of the counterparties. The models also incorporate the Company's creditworthiness in order to
appropriately reflect non-performance risk. Inputs to the derivative pricing models are generally observable and do not contain a high
level of subjectivity and, accordingly, the Company's derivatives were classified within Level 2 of the fair value hierarchy. While the
Company believes its estimates result in a reasonable reflection of the fair value of these instruments, the estimated values may not be
representative of actual values that could have been realized or that will be realized in the near future. Refer to Note 6 of these
Consolidated Financial Statements for additional information regarding the Company's derivative financial instruments
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
During the year ended December 31, 2011, the Company did not record any adjustments to the carrying value of existing assets
based on non-recurring fair value measurements.
During the year ended December 31, 2010, the Company recorded impairments totaling $11.5 million on assets with a total
carrying value of $11.7 million, as a result of changes in management's expectations with respect to projected cash flows, ongoing
negative cash flows for certain assets or asset groups or due to the discontinued use of certain assets. The impairments related to
property and equipment, customer relationships, software, other intangibles, and other long-term assets.
The fair values of the impaired assets were estimated primarily using an income approach, based on management's current cash
flow projections and using assumptions that management believed were consistent with market participant assumptions. The inputs to
the valuations were largely unobservable, and the measurements were accordingly classified as Level 3. The majority of these assets
were deemed fully impaired. All key assumptions and valuations were determined by and are the responsibility of management. The
specific impairments are described in Note 2 of these Consolidated Financial Statements.
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