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Fair Value Measurements
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Authoritative accounting guidance on fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.
As of December 31, 2017 and 2016, we held certain investment assets and liabilities that are required to be measured at fair value on a recurring basis. These investments include money market funds, available-for-sale equity securities, trading securities, seed capital investments and securities sold short whereby fair value is determined using quoted prices in active markets. Accordingly, the fair value measurements of these investments have been classified as Level 1 in the tables below. Fair value for deferred compensation liabilities that are credited with deemed gains or losses of the underlying hypothetical investments, primarily equity securities, has been classified as Level 1 in the tables below. In addition, we have foreign currency derivative instruments that are required to be reported at fair value. Fair value for the derivative instruments was determined using inputs from quoted prices for similar assets and liabilities in active markets that are directly or indirectly observable. Accordingly, our derivative instruments have been classified as Level 2 in the tables below.
The following tables present assets and liabilities measured at fair value on a recurring basis (in millions):
 
 
 
Fair Value Measurements at
Reporting Date Using
 
December 31,
2017
 
Quoted prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Money market funds (1)
$
180.0

 
$
180.0

 
$
—

 
$
—

Equity securities (2)
45.4

 
45.4

 
—

 
—

Seed capital investments (2)
12.1

 
12.1

 
—

 
—

Deferred compensation liabilities (3)
(33.6
)
 
(33.6
)
 
—

 
—

Derivative instruments (3)
(0.1
)
 
—

 
(0.1
)
 
—

Total
$
203.8

 
$
203.9

 
$
(0.1
)
 
$
—

 
 
 
Fair Value Measurements at
Reporting Date Using
 
December 31,
2016
 
Quoted prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Money market funds (1)
$
437.0

 
$
437.0

 
$
—

 
$
—

Equity securities (2)
188.4

 
188.4

 
—

 
—

Seed capital investments (2)
61.0

 
61.0

 
—

 
—

Deferred compensation liabilities (3)
(7.9
)
 
(7.9
)
 
—

 
—

Securities sold short (3)
(8.2
)
 
(8.2
)
 
—

 
—

Derivative instruments (3)
(0.4
)
 
—

 
(0.4
)
 
—

Total
$
669.9

 
$
670.3

 
$
(0.4
)
 
$
—

_______________________________________________________________________
(1) Included in Cash and cash equivalents, Funds held on behalf of clients, and Other current assets on our Consolidated Balance Sheet.
(2) Included in Investments on our Consolidated Balance Sheet.
(3) Included in Other current assets and Other liabilities on our Consolidated Balance Sheet.
At December 31, 2017 and 2016, we held approximately $7.6 million and $11.5 million, respectively, of investments in pooled funds, which are measured using net asset value as a practical expedient for fair value and therefore excluded from the table above. The investments in pooled funds are included within the $142.2 million and $128.0 million of cost method and other investments at December 31, 2017 and 2016, respectively, disclosed within Note 5, “Investments.”