Fair Value Measurement of Assets and Liabilities

3 Months Ended

Mar. 31, 2014

Fair Value Measurement of Assets and Liabilities

9.	Fair Value Measurement of Assets and Liabilities

The following assets and liabilities are recorded at fair value on a recurring basis (in millions):


	As of March 31, 2014
			Fair Value Measurements at Reporting Date Using:
Description	Recorded Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Available-for-sale securities
Corporate debt securities	$	288.9	$	—	$	288.9	$	—
U.S. government and agency debt securities		199.2		—		199.2		—
Foreign government debt securities		8.1		—		8.1		—
Commercial paper		267.2		—		267.2		—
Certificates of deposit		60.5		—		60.5		—

Total available-for-sale securities		823.9		—		823.9		—
Derivatives, current and long-term
Foreign currency forward contracts and options		49.2		—		49.2		—
Interest rate swaps		17.1		—		17.1		—

	$	890.2	$	—	$	890.2	$	—

Liabilities
Derivatives, current and long-term
Foreign currency forward contracts and options		18.3		—		18.3		—
Interest rate swaps		2.7		—		2.7		—

	$	21.0	$	—	$	21.0	$	—


	As of December 31, 2013
			Fair Value Measurements at Reporting Date Using:
Description	Recorded Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Available-for-sale securities
Corporate debt securities	$	457.9	$	—	$	457.9	$	—
U.S. government and agency debt securities		211.2		—		211.2		—
Foreign government debt securities		3.1		—		3.1		—
Commercial paper		68.3		—		68.3		—
Certificates of deposit		67.2		—		67.2		—

Total available-for-sale securities		807.7		—		807.7		—
Derivatives, current and long-term
Foreign currency forward contracts and options		68.7		—		68.7		—
Interest rate swaps		16.3		—		16.3		—

	$	892.7	$	—	$	892.7	$	—

Liabilities
Derivatives, current and long-term
Foreign currency forward contracts and options		20.6		—		20.6		—
Interest rate swaps		7.0		—		7.0		—

	$	27.6	$	—	$	27.6	$	—

We value our available-for-sale securities using a market approach based on broker prices for identical assets in over-the-counter markets and we perform ongoing assessments of counterparty credit risk.

We value our foreign currency forward contracts and foreign currency options using a market approach based on foreign currency exchange rates obtained from active markets and we perform ongoing assessments of counterparty credit risk.

We value our interest rate swaps using a market approach based on publicly available market yield curves and the terms of our swaps and we perform ongoing assessments of counterparty credit risk.

- 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.

+ References+ Details