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Fair Value Of Assets And Liabilities (Tables)
 3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value By Balance Sheet Grouping
The carrying value and fair value of financial instruments are presented in the below summary table. The fair value of financial instruments held by CIP is presented in Note 12, "Consolidated Investment Products." See the company's most recently filed Form 10-K for additional disclosures on valuation methodology and fair value.
 
 
March 31, 2018
 
December 31, 2017
$ in millions
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Cash and cash equivalents
 
1,861.5

 
1,861.5

 
2,006.4

 
2,006.4

Equity investments
 
381.4

 
381.4

 
346.6

 
346.6

Available-for-sale debt investments
 
11.1

 
11.1

 
15.9

 
15.9

Foreign time deposits *
 
28.7

 
28.7

 
28.6

 
28.6

Assets held for policyholders
 
12,902.2

 
12,902.2

 
12,444.5

 
12,444.5

Policyholder payables *
 
(12,902.2
)
 
(12,902.2
)
 
(12,444.5
)
 
(12,444.5
)
Contingent consideration liability
 
(53.6
)
 
(53.6
)
 
(57.4
)
 
(57.4
)
Long-term debt *
 
(2,076.4
)
 
(2,180.2
)
 
(2,075.8
)
 
(2,258.1
)
*
These financial instruments are not measured at fair value on a recurring basis. See the most recently filed Form 10-K 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, and are accordingly classified as Level 2 securities.
Tri-Level Hierarchy, Carrying Value
he following table presents, by hierarchy levels, 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 company's Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017, respectively:
 
As of March 31, 2018
$ 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)
Assets:
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
818.1

 
818.1

 
—

 
—

Investments:*
 
 
 
 
 
 
 
Equity investments:
 
 
 
 
 
 
 
Seed money
264.2

 
264.2

 
—

 
—

Investments related to deferred compensation plans
98.7

 
98.7

 
—

 
—

Other equity securities
18.5

 
18.5

 
—

 
—

Available-for-sale debt investments:
 
 
 
 
 
 
 
Collateralized loan obligations (CLOs)
4.9

 
—

 
4.9

 
—

Other debt securities
6.2

 
—

 
—

 
6.2

Assets held for policyholders
12,902.2

 
12,902.2

 
—

 
—

Total
14,112.8

 
14,101.7

 
4.9

 
6.2

Liabilities:
 
 
 
 
 
 
 
Contingent consideration liability
(53.6
)
 
—

 
—

 
(53.6
)
Total
(53.6
)
 
—

 
—

 
(53.6
)


 
As of December 31, 2017
$ 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)
Assets:
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
875.5

 
875.5

 
—

 
—

Investments:*
 
 
 
 
 
 
 
Equity investments:
 
 
 
 
 
 
 
Seed money
243.0

 
243.0

 
—

 
—

Investments related to deferred compensation plans
92.3

 
92.3

 
—

 
—

Other equity securities
11.3

 
11.3

 
—

 
—

Available-for-sale debt investments:
 
 
 
 
 
 
 
CLOs
6.0

 
—

 
6.0

 
—

Other debt securities
9.9

 
—

 
—

 
9.9

Assets held for policyholders
12,444.5

 
12,444.5

 
—

 
—

Total
13,682.5

 
13,666.6

 
6.0

 
9.9

Liabilities:
 
 
 
 
 
 
 
Contingent consideration liability
(57.4
)
 
—

 
—

 
(57.4
)
Total
(57.4
)
 
—

 
—

 
(57.4
)
*
Foreign time deposits of $28.7 million (December 31, 2017: $28.6 million) are excluded from this table. Equity method and other investments of $286.6 million and $5.8 million, respectively, (December 31, 2017: $277.3 million and $6.2 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
he following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities during the three months ended March 31, 2018 and March 31, 2017, which are valued using significant unobservable inputs:
 
Three months ended March 31, 2018
$ in millions
Contingent Consideration Liability
 
Other Debt Securities
Beginning balance
(57.4
)
 
9.9

Net unrealized gains and losses included in other gains and losses, net*
0.4

 
(3.2
)
Disposition/settlements
3.4

 
—

Other
—

 
(0.5
)
Ending balance
(53.6
)
 
6.2


 
Three months ended March 31, 2017
$ in millions
Contingent Consideration Liability
 
CLOs
 
Other Debt Securities
Beginning balance
(78.2
)
 
12.9

 
13.2

Purchases/acquisitions
—

 
—

 
7.3

Net unrealized gains and losses included in other gains and losses, net*
0.5

 
—

 
—

Disposition/settlements
3.6

 
—

 
(7.6
)
Transfer from level 3 to level 2
—

 
(12.9
)
 
—

Ending balance
(74.1
)
 
—

 
12.9

_______________
*
These unrealized gains and losses are attributable to balances still held at the respective period ends.
Contingent Consideration Liability
At March 31, 2018 inputs used in the model included assumed growth rates in AUM ranging from (2.34)% to 0.74% (weighted average growth rate of (0.03)%) and a discount rate of 4.47%. Changes in fair value are recorded in other gains and losses, net in the Condensed Consolidated Statements of Income in the period incurred. An increase in AUM levels and/or a decrease in the discount rate would increase the fair value of the contingent consideration liability, while a decrease in forecasted AUM and/or an increase in the discount rate would decrease the liability.