XML 127 R34.htm IDEA: XBRL DOCUMENT v2.4.0.6
Fair Value Of Assets And Liabilities (Tables)
 12 Months Ended
Dec. 31, 2011
Fair Value Disclosures [Abstract]  
Fair Value Of Financial Instruments Held By Consolidated Investments

The carrying value and fair value of financial instruments is presented in the below summary table. The fair value of financial instruments held by consolidated investment products is presented in Note 20, "Consolidated Investment Products."
 
December 31, 2011
 
December 31, 2010
$ in millions
Footnote Reference
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Cash and cash equivalents
 
 
727.4

 
727.4

 
740.5

 
740.5

Available for sale investments
4
 
63.5

 
63.5

 
100.0

 
100.0

Assets held for policyholders
 
 
1,243.5

 
1,243.5

 
1,295.4

 
1,295.4

Trading investments
4
 
187.5

 
187.5

 
180.6

 
180.6

Foreign time deposits*
4
 
32.2

 
32.2

 
28.2

 
28.2

Support agreements*
19,20
 
(1.0
)
 
(1.0
)
 
(2.0
)
 
(2.0
)
Policyholder payables
 
 
(1,243.5
)
 
(1,243.5
)
 
(1,295.4
)
 
(1,295.4
)
Financial instruments sold, not yet purchased
 
 
(1.0
)
 
(1.0
)
 
(0.7
)
 
(0.7
)
Derivative liabilities
 
 
—

 
—

 
(0.1
)
 
(0.1
)
Note Payable
 
 
(16.8
)
 
(16.8
)
 
(18.9
)
 
(18.9
)
Total debt*
9
 
(1,284.7
)
 
(1,307.5
)
 
(1,315.7
)
 
(1,339.3
)

____________

*
These financial instruments are not measured at fair value on a recurring basis. See the indicated footnotes for additional information about the carrying and fair values of these financial instruments. Foreign time deposits are measured at cost plus accrued interest, which approximates fair value.
Tri-Level Hierarchy, Carrying Value
The following table presents, for each of the hierarchy levels described above, the carrying value of the company's assets and liabilities, including major security type for equity and debt securities, which are measured at fair value on the face of the statement of financial position as of December 31, 2011.
 
As of December 31, 2011
$ in millions
Fair Value Measurements
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
Current assets:
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
257.7

 
257.7

 
—

 
—

Investments:*

 

 

 
 
Available-for-sale:

 

 

 
 
Seed money
63.5

 
63.5

 
—

 
—

Trading investments:

 

 

 
 
Investments related to deferred compensation plans
184.4

 
184.4

 
—

 
—

UIT-related equity and debt securities:

 

 

 
 
Corporate stock
1.1

 
1.1

 
—

 
—

UITs
0.9

 
0.9

 
—

 
—

Municipal securities
1.1

 
—

 
1.1

 
—

Assets held for policyholders
1,243.5

 
1,243.5

 
—

 
—

Total assets at fair value
1,752.2

 
1,751.1

 
1.1

 
—

Current liabilities:
 
 
 
 
 
 
 
Policyholder payables
(1,243.5
)
 
(1,243.5
)
 
—

 
—

UIT-related financial instruments sold, not yet purchased:

 

 

 
 
Corporate equities
(1.0
)
 
(1.0
)
 
—

 
—

Note payable
(16.8
)
 
—

 
—

 
(16.8
)
Total liabilities at fair value
(1,261.3
)
 
(1,244.5
)
 
—

 
(16.8
)

*
Current foreign time deposits of $32.2 million and other current investments of $0.5 million are excluded from this table. Other non-current equity and cost method investments of $193.1 million and $7.7 million, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.
The following table presents, for each of the hierarchy levels described above, the carrying value of the company's assets and liabilities that are measured at fair value as of December 31, 2010:
 
As of December 31, 2010
$ in millions
Fair Value Measurements
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
Current assets:
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
316.4

 
316.4

 
—

 
—

Investments:*
 

 
 

 
 

 
 

Available-for-sale:
 

 
 

 
 

 
 

Seed money
99.5

 
99.5

 
—

 
—

Trading investments:
 

 
 

 
 

 
 

Investments related to deferred compensation plans
165.5

 
165.5

 
—

 
—

UIT-related equity and debt securities:
 

 
 

 
 

 
 

Corporate stock
1.2

 
1.2

 
—

 
—

UITs
4.0

 
4.0

 
—

 
—

Municipal securities
9.9

 
—

 
9.9

 
—

Assets held for policyholders
1,295.4

 
1,295.4

 
—

 
—

Total current assets
1,891.9

 
1,882.0

 
9.9

 
—

Non-current assets:
 

 
 

 
 

 
 

Investments - available-for-sale*:
 

 
 

 
 

 
 

CLOs
0.5

 
—

 
—

 
0.5

Total assets at fair value
1,892.4

 
1,882.0

 
9.9

 
0.5

Current liabilities:
 

 
 

 
 

 
 

Policyholder payables
(1,295.4
)
 
(1,295.4
)
 
—

 
—

UIT-related financial instruments sold, not yet purchased:
 

 
 

 
 

 
 

Corporate equities
(0.7
)
 
(0.7
)
 
—

 
—

UIT-related derivative liabilities
(0.1
)
 
(0.1
)
 
—

 
—

Non-current liabilities:
 

 
 

 
 

 
 

Note payable
(18.9
)
 
—

 
—

 
(18.9
)
Total liabilities at fair value
(1,315.1
)
 
(1,296.2
)
 
—

 
(18.9
)

____________

*
Current foreign time deposits of $28.2 million and other current investments of $0.5 million are excluded from this table. Other non-current equity and cost method investments of $156.9 million and $7.0 million, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.
Reconciliation of Balance, Fair Value Measurement, Level 3
The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities during the year ending December 31, 2011 and December 31, 2010, which are valued using significant unobservable inputs:
 
For the year ended December 31, 2011
 
For the year ended December 31, 2010
$ in millions
CLO Investment
 
Note Payable
 
CLO Investment
Beginning balance
0.5

 
(18.9
)
 
17.9

Adoption of guidance now encompassed in ASC Topic 810*
—

 
—

 
(17.4
)
Beginning balance, as adjusted
0.5

 
(18.9
)
 
0.5

Net unrealized gains and losses included in accumulated other comprehensive income/(loss)**
—

 
—

 
0.1

Foreign exchange movements included in other expenses
—

 
(0.8
)
 
—

Purchases, sales, issuances, and settlements, net***
(0.5
)
 
2.9

 
(0.1
)
Ending balance
—

 
(16.8
)
 
0.5


____________

*
The company adopted guidance now encompassed in ASC Topic 810 on January 1, 2010, resulting in the consolidation of CLOs for which the company has an underlying investment of $50.4 million at December 31, 2011 (before consolidation). The adjustment of $17.4 million in the table above reflects the elimination of the company's equity interest upon adoption. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.
**
There were no net unrealized gains and losses included in accumulated other comprehensive income/(loss) for the year ended December 31, 2011 as assets was sold in the year ended December 31, 2011 (year ended December 31, 2010: $0.1 million attributed to the change in unrealized gains and losses related to assets still held at December 31, 2010).
***
Prior to the adoption of guidance included in ASU 2010-06, discussed in Note 1, “Accounting Policies,” purchases, sales, issuances, and settlements were presented net. For the year ended December 31, 2011 there was $0.1 million of return of capital and a sale of $0.4 million related to the CLO investment (year ended December 31, 2010: $0.1 million return of capital activity). For the year ended December 31, 2011, there was $2.9 million in settlement activity related to the note payable.