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Fair Value Measurements
9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Recurring Fair Value Measurements
Assets and liabilities carried at fair value, measured on a recurring basis, as of September 30, 2023 were as follows:
Fair Value Measurements Using
(In millions)Total
Quoted
Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Other
Unobservable
Inputs
(Level 3)
Assets
Investments$35.9 $18.5 $17.4 $— 
Derivative assets7.2 .1 7.1 — 
Bank drafts6.7 6.7 — — 
Cross-currency swap12.8 — 12.8 — 
Liabilities
Derivative liabilities$7.9 $.9 $7.0 $— 
Contingent consideration liabilities4.9 — — 4.9 
Assets and liabilities carried at fair value, measured on a recurring basis, as of December 31, 2022 were as follows:
Fair Value Measurements Using
(In millions)Total
Quoted
Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Other
Unobservable
Inputs
(Level 3)
Assets
Investments$31.3 $22.6 $8.7 $— 
Derivative assets4.3 — 4.3 — 
Bank drafts3.2 3.2 — — 
Cross-currency swap15.5 — 15.5 — 
Liabilities
Derivative liabilities$12.2 $.3 $11.9 $— 
Contingent consideration liabilities6.0 — — 6.0 
Investments include fixed income securities (primarily U.S. government and corporate debt securities) measured at fair value using quoted prices/bids and a money market fund measured at fair value using net asset value. As of September 30, 2023, investments of $1.9 million and $34.0 million were included in “Cash and cash equivalents” and “Other current assets,” respectively, in the unaudited Condensed Consolidated Balance Sheets. As of December 31, 2022, investments of $0.7 million and $30.6 million were included in “Cash and cash equivalents” and “Other current assets,” respectively, in the unaudited Condensed Consolidated Balance Sheets. Derivatives that are exchange-traded are measured at fair value using quoted market prices and classified within Level 1 of the valuation hierarchy. Derivatives measured based on foreign exchange rate inputs that are readily available in public markets are classified within Level 2 of the valuation hierarchy. Bank drafts (maturities greater than three months) are valued at face value due to their short-term nature and were included in “Other current assets” in the unaudited Condensed Consolidated Balance Sheets.
Contingent consideration liabilities as of September 30, 2023 relate to estimated earn-out payments associated with one of our acquisitions completed in 2022, which are subject to the acquired company achieving certain post-acquisition performance targets. These liabilities were recorded based on the expected payments as of September 30, 2023 and have been classified as Level 3.
In addition to the items described above, we also have made venture investments in privately held companies and utilize the measurement alternative for equity investments that do not have readily determinable fair values, measuring them at cost less impairment plus or minus observable price changes in orderly transactions. We recognized no net gains or losses on these investments in the three or nine months ended September 30, 2023. We recognized net gains on these investments of $8.7 million and $12.4 million in the three and nine months ended October 1, 2022, respectively. These net gains were recorded in "Other expense (income), net” in the unaudited Condensed Consolidated Statements of Income. The total carrying value of our venture investments was approximately $70 million as of September 30, 2023 and December 31, 2022 and included in “Other assets” in the unaudited Condensed Consolidated Balance Sheets.