FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2021

The fair value of financial instruments are presented in the below summary table. The fair value of financial instruments held by CIP are presented in Note 21, "Consolidated Investment Products."


	December 31, 2021	December 31, 2020
$ in millions	Fair Value	Fair Value
Cash and cash equivalents	1,896.4	1,408.4
Restricted cash (1)	—	129.2
Equity investments	337.9	360.3

Foreign time deposits (2)	30.4	29.9
Assets held for policyholders	1,893.6	7,582.1
Policyholder payables (2)	(1,893.6)	(7,582.1)
Total return swaps related to deferred compensation plans	1.6	5.1
Contingent consideration liability	(1.3)	(18.6)

____________

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

(2)These financial instruments are not measured at fair value on a recurring basis. 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, 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 company's Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020, respectively:


	As of December 31, 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)	1,270.0	1,270.0	—	—
Investments: (2)
Equity investments:
Seed money	109.4	109.4	—	—
Investments related to deferred compensation plans	226.6	226.6	—	—
Other equity securities	1.9	1.9	—	—



Assets held for policyholders (3)	1,893.6	1,893.6		—
Total return swaps related to deferred compensation plans	1.6	—	1.6	—
Total	3,503.1	3,501.5	1.6	—
Liabilities:
Contingent consideration liability	(1.3)			(1.3)
Total	(1.3)	—	—	(1.3)


	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 primarily represents cash held in affiliated money market funds.

(2)Foreign time deposits of $30.4 million (December 31, 2020: $29.9 million) are excluded from this table. Equity method and other investments of $550.1 million and $7.9 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 table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities during the year ended December 31, 2021 and December 31, 2020, which are valued using significant unobservable inputs:


	For the year ended December 31, 2021	For the year ended December 31, 2020
$ in millions	Contingent Consideration Liability		Contingent Consideration Liability
Beginning balance	(18.6)		(60.2)


Net unrealized gains/(losses) included in other gains and losses, net	10.1		13.8

Disposition/settlements	11.8		22.3
Other	(4.6)		5.5



Ending balance	(1.3)		(18.6)