FINANCIAL INSTRUMENTS

Cash, Cash Equivalents and Investments

The following tables summarize the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of the Company’s cash and available-for-sale securities by investment category that are recorded as cash and cash equivalents, or short-term or long-term investments as of June 30, 2014, and December 31, 2013 (in millions):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short- term Investments		Long- term Investments
June 30, 2014
Cash	$	209.1	$	—	$	—		$	209.1	$	209.1	$	—	$	—
Level 1:
Money market funds	239.3		—		—			239.3		239.3		—		—
U.S. Treasuries & corporate equity securities	129.5		—		(0.6		)	128.9		23.2		66.9		38.8
Subtotal	368.8		—		(0.6		)	368.2		262.5		66.9		38.8
Level 2:
Commercial paper	76.6		—		—			76.6		30.9		45.7		—
Corporate securities	707.0		2.9		(0.4		)	709.5		—		152.6		556.9
U.S. government agencies	245.0		0.4		(0.3		)	245.1		5.1		26.0		214.0
Non-U.S. government securities	48.4		0.1		—			48.5		—		29.2		19.3
Municipal securities	385.0		1.4		—			386.4		—		150.6		235.8
Subtotal	1,462.0		4.8		(0.7		)	1,466.1		36.0		404.1		1,026.0
Total assets measured at fair value	$	2,039.9	$	4.8	$	(1.3	)	$	2,043.4	$	507.6	$	471.0	$	1,064.8



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short- term Investments		Long- term Investments
December 31, 2013
Cash	$	247.8	$	—	$	—		$	247.8	$	247.8	$	—	$	—
Level 1:
Money market funds	516.2		—		—			516.2		516.2		—		—
U.S. Treasuries & corporate equity securities	65.4		—		(0.3		)	65.1		—		25.5		39.6
Subtotal	581.6		—		(0.3		)	581.3		516.2		25.5		39.6
Level 2:
Commercial paper	100.2		—		—			100.2		18.1		82.1		—
Corporate securities	844.7		2.9		(1.9		)	845.7		—		227.7		618.0
U.S. government agencies	352.2		0.7		(0.7		)	352.2		—		84.7		267.5
Non-U.S. government securities	67.7		0.2		(0.1		)	67.8		—		41.2		26.6
Municipal securities	550.1		1.5		(0.1		)	551.5		—		160.2		391.3
Subtotal	1,914.9		5.3		(2.8		)	1,917.4		18.1		595.9		1,303.4
Level 3:
Auction rate securities	8.0		—		(0.6		)	7.4		—		—		7.4
Subtotal	8.0		—		(0.6		)	7.4		—		—		7.4
Total assets measured at fair value	$	2,752.3	$	5.3	$	(3.7	)	$	2,753.9	$	782.1	$	621.4	$	1,350.4

The following table summarizes the contractual maturities of the Company’s cash equivalents and available-for-sale securities (excluding cash and money market funds), at June 30, 2014 (in millions):



	Amortized Cost		Fair Value
Mature in less than one year	$	522.2	$	523.3
Mature in one to five years	1,062.0		1,064.8
Mature after five years	—		—
Total	$	1,584.2	$	1,588.1

Realized gains and losses, net of tax, were not material for any of the periods presented.

As of June 30, 2014, and December 31, 2013, net unrealized gains of $3.5 million and $1.6 million, respectively, were included in accumulated other comprehensive income in the accompanying condensed consolidated balance sheets, along with the related tax impact of $1.0 million and $0.7 million, respectively.

There have been no transfers between Level 1 and Level 2 measurements during the six months ended June 30, 2014, and there were no changes in the valuation technique used. Level 3 assets consisted of municipal bonds with auction rate securities (“ARS”). In April 2014, the ARS were redeemed at par value of $8.0 million and the Company recorded $0.6 million in gains as other comprehensive income relating to the recovery of unrealized losses on the ARS recorded in 2013.

Foreign currency derivatives

The objective of the Company’s hedging program is to mitigate the impact of changes in currency exchange rates on net cash flow from foreign currency denominated sales, intercompany balances, and other monetary assets or liabilities denominated in currencies other than the U.S. dollar ("USD"). The derivative assets and liabilities are measured using Level 2 fair value inputs.

Cash Flow Hedges

The Company enters into currency forward contracts as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar, primarily the European Euro ("EUR"), the British Pound (“GBP”) and the Korean Won (“KRW”).

For these derivatives, the Company reports the after-tax gain or loss from the hedge as a component of accumulated other comprehensive income in stockholders' equity and reclassifies it into earnings in the same period in which the hedge transaction affects earnings. The net gains (losses) reclassified to revenue related to the hedged revenue transactions were not material for the three and six months ended June 30, 2014, and 2013.

Other Derivatives Not Designated as Hedging Instruments

Other derivatives not designated as hedging instruments consist primarily of forward contracts that the Company uses to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the USD, primarily the EUR, GBP, Swiss Franc (“CHF”), Japanese Yen (“JPY”) and KRW. The net gains (losses) recognized in interest and other income (expense), net in the condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2014, and 2013, were not material.

The notional amounts for derivative instruments provide one measure of the transaction volume. Total gross notional amounts (in USD) for derivatives and aggregate gross fair value outstanding at the end of each period were as follows (in millions):



	Derivatives Designated as Hedging Instruments				Derivatives Not Designated as Hedging Instruments
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
Notional amounts:
Forward contracts	$	128.3	$	107.7	$	87.4	$	97.5
Gross fair value recorded in:
Prepaid and other current assets	$	0.3	$	—	$	0.3	$	—
Other accrued liabilities	$	0.1	$	1.3	$	0.3	$	2.5