Fair Value

6 Months Ended

Jun. 30, 2022

The following table summarizes financial instruments measured at fair value, on a recurring basis, as of June 30, 2022:


(in millions)	Total		Level 1		Level 2		Level 3
Assets
Interest rate swaps (Notes 6 and 10)	$	168.8	$	—	$	168.8	$	—
Available-for-sale marketable securities (Note 5)	3.1		—		3.1		—
Total	$	171.9	$	—	$	171.9	$	—

Liabilities
Interest rate swaps (Notes 9 and 10)	$	0.3	$	—	$	0.3	$	—
Put option on Cost Method Investment (Note 9)	10.0		—		—		10.0
Total	$	10.3	$	—	$	0.3	$	10.0

The following table summarizes financial instruments measured at fair value, on a recurring basis, as of December 31, 2021:


(in millions)	Total		Level 1		Level 2		Level 3
Assets
Interest rate swaps (Notes 6 and 10)	$	12.1	$	—	$	12.1	$	—
Available-for-sale marketable securities (Note 5)	3.1		—		3.1		—
Total	$	15.2	$	—	$	15.2	$	—

Liabilities
Interest rate swaps (Notes 9 and 10)	$	34.5	$	—	$	34.5	$	—
Put option on Cost Method Investment (Note 9)	11.9		—		—		11.9
Contingent consideration (Note 8)	16.8		—		—		16.8
Total	$	63.2	$	—	$	34.5	$	28.7

Level 2 instruments consist of interest rate swaps and available-for-sale foreign exchange-traded corporate bonds. The interest rate swaps fair values are determined using the market standard methodology of discounting the future expected net cash receipts or payments that would occur if variable interest rates rise above or fall below the fixed rates of the swaps. The variable interest rates used in the calculations of projected receipts on the swaps are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. As discussed in Note 10, “Debt,” there are two tranches of interest rate swaps that we entered into in 2020. As of June 30, 2022, one of those tranches is in an asset position, and the other is in a liability position. Foreign exchange-traded corporate bonds are available-for-sale marketable securities valued at their current quoted prices. These securities mature between 2027 and 2033. Unrealized gains and losses on available-for-sale marketable securities, which are not material, are included in other comprehensive income.

Level 3 instruments consist of contingent consideration related to a Cost Method investment we acquired in 2021 and a put option on the same Cost Method investment, and a contingent consideration obligation of an acquisition made by Neustar prior to the date we acquired Neustar. During the first quarter of 2022, we paid $14.8 million of contingent consideration obligation related to the Cost Method investment. The put option allows the owner of the other shares to compel TransUnion to purchase their remaining shares, subject to the fulfillment of certain conditions. The fair value of the put option is determined using a Monte Carlo analysis with assumptions that include revenue projections, volatility rates, discount rates and the option period, among others. During the second quarter of 2022, we paid $2.8 million of contingent consideration obligation of Neustar as discussed above.

- 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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