FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2013

The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis:



			Basis of Fair Value Measurements
			Quoted Prices in Active Markets for Identical Assets / Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
June 30, 2013			Level 1		Level 2		Level 3
Assets:
Trading securities	$	47,362	$	47,362	$	—	$	—
Cash surrender value of life insurance policies	27,004		—		27,004		—
Put option	7,400		—		—		7,400
Available-for-sale equity securities	1,113		—		—		1,113
Foreign currency forward contracts	134		—		134		—
Total	$	83,013	$	47,362	$	27,138	$	8,513

Liabilities:
Deferred compensation liabilities	$	79,410	$	—	$	79,410	$	—
Interest rate swaps	30,694		—		30,694		—
Call option	9,940		—		—		9,940
Total	$	120,044	$	—	$	110,104	$	9,940



			Basis of Fair Value Measurements
			Quoted Prices in Active Markets for Identical Assets / Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2012			Level 1		Level 2		Level 3
Assets:
Trading securities	$	52,283	$	52,283	$	—	$	—
Cash surrender value of life insurance policies	25,018		—		25,018		—
Interest rate swaps	830		—		830		—
Available-for-sale equity securities	612		—		—		612
Foreign currency forward contracts	403		—		403		—
Total	$	79,146	$	52,283	$	26,251	$	612

Liabilities:
Deferred compensation liabilities	$	82,218	$	—	$	82,218	$	—
Interest rate swaps	3,129		—		3,129		—
Total	$	85,347	$	—	$	85,347	$	—

A full description regarding the Company's fair value measurements is contained in Note 6 to the Consolidated Financial Statements in the Company's 2012 Annual Report on Form 10-K.

Investments in available-for-sale equity securities consist of the revaluation of an existing investment in unregistered common shares of a publicly-held company. This investment is classified within Level 3 because the unregistered securities contain restrictions on their sale, and therefore, the fair value measurement reflects a discount for the effect of the restriction.

In connection with the acquisition of certain businesses of UMass, the Company granted to UMass a call option and UMass granted to the Company a put option for UMass to acquire an 18.90% equity interest in a newly formed entity. The put and call options are derivative instruments that have a vesting period of approximately two years and their fair values have been measured using a combination of discounted cash flows and the Black-Scholes-Merton option pricing model (See Note 5).

The following table provides a reconciliation of the beginning and ending balances of assets and liabilities using significant unobservable inputs:



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Available-for-Sale Equity Securities		Put Option Derivative Asset			Total
Balance, December 31, 2012	$	612	$	—		$	612
Purchases, additions and issuances	—		8,250			8,250
Total gains (losses) - realized/ unrealized:
Included in earnings	—		(850		)	(850		)
Included in other comprehensive income (loss)	501		—			501
Transfers in and out of Level 3	—		—			—
Balance, June 30, 2013	$	1,113	$	7,400		$	8,513



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
		Call Option Derivative Liability
Balance, December 31, 2012		$	—
Purchases, additions and issuances		10,808
Total (gains) losses - realized/ unrealized:
Included in earnings		(868		)
Transfers in and out of Level 3		—
Balance, June 30, 2013		$	9,940

The unrealized gains and losses included in earnings for the six months ended June 30, 2013 are reported in other non-operating income.

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable and accrued expenses approximate fair value based on the short maturities of these instruments. At June 30, 2013, the fair value of the Company’s debt was estimated at $3.8 billion, which exceeded the carrying value by $262 million. At December 31, 2012, the fair value of the Company's debt was estimated at $3.8 billion, which exceeded the carrying value by $481 million. Principally all of the Company's debt is classified within Level 1 of the fair value hierarchy because the fair value of the debt is estimated based on rates currently offered to the Company with identical terms and maturities, using quoted active market prices and yields, taking into account the underlying terms of the debt instruments.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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