Fair Value Measurements

Authoritative guidance for fair value measurements establishes a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:



Level 1		Unadjusted quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2		Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3		Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Financial Instruments that are Measured at Fair Value on a Recurring Basis

We primarily apply the market approach to determine the fair value of financial instruments that are measured at fair value on a recurring basis. There were no changes to our valuation techniques used to determine the fair value of financial instruments during the six months ended June 30, 2012. The following tables present information about our financial instruments measured at fair value on a recurring basis as of June 30, 2012 and June 30, 2011, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.



	June 30, 2012												Balance Sheet Classification
	Level 1			Level 2			Level 3			Total			Balance Sheet Classification
Assets
Cash equivalents	$	962.2		$	0.0		$	0.0		$	962.2		Cash and cash equivalents
Short-term marketable securities	12.7			0.0			0.0			12.7			Marketable securities
Restricted marketable securities ¹	0.0			136.0			0.0			136.0			Restricted marketable securities
Long-term investments	1.3			0.0			0.0			1.3			Other assets
Total	$	976.2		$	136.0		$	0.0		$	1,112.2

As a percentage of total assets	8.2		%	1.1		%	0.0		%	9.4		%

Liabilities
Interest rate swap agreements ²	$	0.0		$	18.6		$	0.0		$	18.6		Other non-current liabilities
Mandatorily redeemable noncontrolling interests ³	0.0			0.0			25.7			25.7

	June 30, 2011												Balance Sheet Classification
	Level 1			Level 2			Level 3			Total			Balance Sheet Classification
Assets
Cash equivalents	$	1,183.0		$	0.0		$	0.0		$	1,183.0		Cash and cash equivalents
Short-term marketable securities	14.2			0.0			0.0			14.2			Marketable securities
Long-term investments	1.4			10.4			0.0			11.8			Other assets
Total	$	1,198.6		$	10.4		$	0.0		$	1,209.0

As a percentage of total assets	9.7		%	0.1		%	0.0		%	9.8		%

Liabilities
Mandatorily redeemable noncontrolling interests ³	$	0.0		$	0.0		$	27.0		$	27.0


¹	The fair value of our restricted marketable securities is based on observable market prices, however, since we are restricted from selling these securities, they are classified as Level 2 within the fair value hierarchy. See Note 6 for further information on our restricted marketable securities.


²	Our interest rate swap agreements are cash flow hedges whose fair value was derived from the present value of future cash flows using valuation models that were based on readily observable market data such as interest rates and yield curves.

Relates to unconditional obligations to purchase additional noncontrolling equity shares of consolidated subsidiaries. Fair value measurement of the obligation was based upon the amount payable as if the forward contracts were settled. The amount redeemable within the next twelve months is classified in accrued liabilities; any interests redeemable thereafter are classified in other non-current liabilities.

The following tables present additional information about financial instruments measured at fair value on a recurring basis and for which we utilize Level 3 inputs to determine fair value.



	Three months ended June 30,						Six months ended June 30,
Liabilities	2012			2011			2012			2011
Mandatorily redeemable noncontrolling interests - Balance at beginning of period	$	25.8		$	57.9		$	58.9		$	52.0
Level 3 additions	0.0			2.5			0.0			2.5
Level 3 reductions	(0.8		)	(33.9		)	(33.9		)	(28.0		)
Realized losses included in net income	(0.7		)	(0.5		)	(0.8		)	(0.4		)
Foreign currency translation	0.0			0.0			(0.1		)	0.1
Mandatorily redeemable noncontrolling interests - Balance at end of period	$	25.7		$	27.0		$	25.7		$	27.0

Level 3 reductions primarily consist of cash payments made related to unconditional obligations to purchase additional equity interests in previous acquisitions, which are classified within the financing section of the unaudited Consolidated Statements of Cash Flows. Level 3 additions relate to new unconditional obligations to purchase additional equity interests in previous acquisitions for cash in future periods. Realized losses included in net income for mandatorily redeemable noncontrolling interests are reported as a component of interest expense in the unaudited Consolidated Statements of Operations.

Financial Instruments that are not Measured at Fair Value on a Recurring Basis

The following table presents information about our financial instruments that are not measured at fair value on a recurring basis as of June 30, 2012, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.



	June 30, 2012
	Level 1		Level 2		Level 3		Total
Total long-term debt	$	0.0	$	1,526.9	$	59.9	$	1,586.8

Our long-term debt comprises senior notes and other notes payable. The fair value of our senior notes is based on quoted prices for such securities traded over-the-counter, but which fair value can also be derived from inputs that are readily observable. Therefore, our senior notes are classified as Level 2 within the fair value hierarchy. Our other notes payable are not actively traded and their fair value is not solely derived from readily observable inputs. Thus, the fair value of our other notes payable is determined based on a discounted cash flow model and other proprietary valuation methods, and therefore is classified as Level 3 within the fair value hierarchy. See Note 2 for further information on our long-term debt.

Non-financial Instruments that are Measured at Fair Value on a Nonrecurring Basis

Certain non-financial instruments are measured at fair value on a nonrecurring basis, primarily goodwill, intangible assets, and property, plant and equipment. Accordingly, these assets are not measured and adjusted to fair value on an ongoing basis but are subject to periodic evaluations for potential impairment.