Fair Value Of Assets And Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value By Balance Sheet Grouping

The 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.

	June 30, 2021	December 31, 2020
$ in millions	Fair Value	Fair Value
Cash and cash equivalents	1,333.0	1,408.4
Restricted cash (1)	—	129.2
Equity investments	444.9	360.3
Foreign time deposits (2)	28.3	29.9
Assets held for policyholders (2)	3,415.2	7,582.1
Policyholder payables	(3,415.2)	(7,582.1)
Contingent consideration liability	(3.4)	(18.6)

____________

(1)    Restricted cash is recorded in Other assets on the Condensed Consolidated Balance Sheets.

(2)    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. Policyholder payables are indexed to the value of the assets held for policyholders.

Tri-Level Hierarchy, Carrying Value

The 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 June 30, 2021 and December 31, 2020, respectively:

	As of June 30, 2021
$ 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 (1)	831.9	831.9	—	—
Investments (2):
Equity investments:
Seed money	219.7	219.7	—	—
Investments related to deferred compensation plans	221.0	221.0	—	—
Other equity securities	4.2	4.2	—	—
Assets held for policyholders (3)	3,415.2	3,415.2	—	—
Total	4,692.0	4,692.0	—	—
Liabilities:
Contingent consideration liability	(3.4)	—	—	(3.4)
Total	(3.4)	—	—	(3.4)

	As of December 31, 2020
$ 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 (1)	947.3	947.3	—	—
Investments (2):
Equity investments:
Seed money	153.5	153.5	—	—
Investments related to deferred compensation plans	202.7	202.7	—	—
Other equity securities	4.1	4.1	—	—
Assets held for policyholders (3)	7,582.1	7,582.1	—	—
Total return swaps related to deferred compensation plans	5.1	—	5.1	—
Total	8,894.8	8,889.7	5.1	—
Liabilities:
Contingent consideration liability	(18.6)	—	—	(18.6)
Total	(18.6)	—	—	(18.6)

____________

(1)    The balance represents cash held in affiliated money market funds.

(2)    Foreign time deposits of $28.3 million (December 31, 2020: $29.9 million) are excluded from this table. Equity method and other investments of $481.9 million and $10.1 million, respectively, (December 31, 2020: $426.1 million and $10.5 million, respectively) are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.

(3)    The majority of assets held for policyholders are held in affiliated funds.

Reconciliation of Balance, Fair Value Measurement, Level 3

The following tables show a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities during the three and six months ended June 30, 2021 and June 30, 2020, which are valued using significant unobservable inputs:

	Contingent Consideration Liability
$ in millions	Three months ended June 30, 2021	Six months ended June 30, 2021
Beginning balance	(4.4)	(18.6)
Purchases/acquisitions	(1.3)	(1.3)
Net unrealized gains and losses included in other gains and losses, net	(1.0)	4.7
Disposition/settlements	3.3	11.8
Ending balance	(3.4)	(3.4)

	Contingent Consideration Liability
$ in millions	Three months ended June 30, 2020	Six months ended June 30, 2020
Beginning balance	(33.6)	(60.2)
Revision to purchase price allocation	—	5.5
Net unrealized gains and losses included in other gains and losses, net	3.2	11.4
Disposition/settlements	1.1	14.0
Ending balance	(29.3)	(29.3)