XML 25 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Schedule of fair value of financial assets and financial liabilities measured on a recurring basis
The following table summarizes the Company's financial assets and liabilities that are measured at fair value on a recurring basis:
 
 
 
Fair Value Measurements
 
December 31,
2012
 
 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Other Unobservable Inputs (Level 3)
Financial Assets
 
 
 
 
 
 
 
Cash equivalents
$
13.5

 
$
13.5

 
$
—

 
$
—

Investments in marketable securities(1)
 
 
 
 
 
 
 
Trading securities
13.6

 
13.6

 
—

 
—

Available-for-sale securities
115.3

 
115.3

 
—

 
—

Other investments(2)
155.4

 
15.7

 
20.8

 
118.9

Financial Liabilities
 
 
 
 
 
 
 
Contingent payment arrangements(3)
$
31.0

 
$
—

 
$
—

 
$
31.0

Obligations to related parties(4)
77.8

 
—

 
—

 
77.8

Interest rate derivatives(5)
4.0

 
—

 
4.0

 
—

 
 
 
Fair Value Measurements
 
September 30,
2013
 
 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Other Unobservable Inputs (Level 3)
Financial Assets
 
 
 
 
 
 
 
Cash equivalents
$
32.1

 
$
32.1

 
$
—

 
$
—

Investments in marketable securities(1)
 
 
 
 
 
 
 
Trading securities
21.9

 
21.9

 
—

 
—

Available-for-sale securities
111.0

 
111.0

 
—

 
—

Other investments(2)
157.9

 
13.1

 
18.5

 
126.3

Financial Liabilities
 
 
 
 
 
 
 
Contingent payment arrangements(3)
$
46.1

 
$
—

 
$
—

 
$
46.1

Obligations to related parties(4)
98.7

 
—

 
—

 
98.7

Interest rate derivatives(5)
2.7

 
—

 
2.7

 
—

___________________________________________________________

(1)
Principally investments in equity securities.
(2)
Other investments are reported within Prepaid expenses and other current assets and Other assets.
(3)
Net present value of expected payments under contingent payment arrangements are reported in Accounts payable and accrued liabilities and Other long-term liabilities.
(4)
Obligations to related parties are presented within Payables to related party and Other long-term liabilities.
(5)
Interest rate derivatives are presented within Other long-term liabilities.
Schedule of presents certain quantitative information about the significant unobservable inputs used in valuing our Level 3 financial liabilities:
The following table presents certain quantitative information about the significant unobservable inputs used in valuing our Level 3 financial liabilities:
 
Quantitative Information about Level 3 Fair Value Measurements
 
Valuation
Techniques
 
Unobservable
Input
 
Fair Value at
December 31,
2012
 
Range at
December 31, 2012
 
Fair Value at September 30, 2013
 
Range at September 30, 2013
Contingent payment arrangements
Discounted cash flow
 
Growth rates
 
$
31.0

 
6.0% – 12.0%
 
$
46.1

 
0.4% - 10.5%
 
 
 
Discount rates
 
 

 
14.0% – 18.0%
 
 

 
14.0% – 18.0%
Affiliate equity repurchase obligations
Discounted cash flow
 
Growth rates
 
9.4

 
(10.0)% – 17.0%
 
30.5

 
4.2% - 12.3%
 
 
 
Discount rates
 
 

 
15.0% – 24.0%
 
 

 
16.0% - 18.0%
Schedule of changes in Level 3 financial assets and financial liabilities
The following table presents the changes in Level 3 financial assets and liabilities for the three and nine months ended September 30, 2012 and 2013:
 
For the Three Months Ended
 
 
September 30, 2012
 
 
September 30, 2013
 
 
Other Investments
 
Contingent Payment Arrangements
 
Obligations to Related Parties
 
 
Other Investments
 
Contingent Payment Arrangements
 
Obligations to Related Parties
 
Balance, beginning of period
$
113.0

 
$
62.5

 
$
79.5

 
 
$
124.4

 
$
44.3

 
$
96.6

 
Net realized gains/losses
(0.1
)
(1) 
—

 
0.5

(3) 
 
(0.5
)
(1) 
—

 
1.1

(3) 
Net unrealized gains/losses relating to instruments still held at the reporting date
1.6

(1) 
3.5

(2) 
0.2

(3) 
 
4.7

(1) 
1.8

(2) 
(0.1
)
(3) 
Purchases and issuances
3.5

 
—

 
1.7

 
 
2.2

 
—

 
23.1

 
Settlements and reductions
(1.3
)
 
—

 
(6.1
)
 
 
(4.5
)
 
—

 
(22.0
)
 
Net transfers in and/or out of Level 3
—

 
—

 
—

 
 
—

 
—

 
—

 
Balance, end of period
$
116.7

 
$
66.0

 
$
75.8

 
 
$
126.3

 
$
46.1

 
$
98.7

 

 
For the Nine Months Ended
 
 
September 30, 2012
 
 
September 30, 2013
 
 
Other Investments
 
Contingent Payment Arrangements
 
Obligations to related parties
 
 
Other Investments
 
Contingent Payment Arrangements
 
Obligations to related parties
 
Balance, beginning of period
$
103.4

 
$
87.1

 
$
92.0

 
 
$
118.9

 
$
31.0

 
$
77.8

 
Net realized gains/losses
(1.7
)
(1) 
—

 
0.9

(3) 
 
(1.9
)
(1) 
—

 
3.1

(3) 
Net unrealized gains/losses relating to instruments still held at the reporting date
7.7

(1) 
(45.9
)
(2) 
0.9

(3) 
 
11.1

(1) 
15.1

(2) 
0.1

(3) 
Purchases and issuances
13.4

 
24.8

 
22.1

 
 
9.9

 
—

 
55.1

 
Settlements and reductions
(6.1
)
 
—

 
(40.1
)
 
 
(11.7
)
 
—

 
(37.4
)
 
Net transfers in and/or out of Level 3
—

 
—

 
—

 
 
—

 
—

 
—

 
Balance, end of period
$
116.7

 
$
66.0

 
$
75.8

 
 
$
126.3

 
$
46.1

 
$
98.7

 
___________________________________________________________

(1)
Gains and losses on Other investments are recorded in Investment and other income.
(2)
Accretion and changes to payment estimates under the Company's contingent payment arrangements are recorded in Imputed interest and contingent payment arrangements and foreign currency translation adjustments related to such arrangements are recorded as Other comprehensive income.
(3)
Gains and losses associated with agreements to repurchase Affiliate equity are recorded in Imputed interest and contingent payment arrangements. Gains and losses related to liabilities offsetting certain investments are recorded in Investment and other income.
Schedule of investments
The following table summarizes, as of December 31, 2012 and September 30, 2013, the nature of these investments and any related liquidation restrictions or other factors which may impact the ultimate value realized:
 
December 31, 2012
 
September 30, 2013
Category of Investment
Fair Value
 
Unfunded
Commitments
 
Fair Value
 
Unfunded
Commitments
Private equity fund-of-funds(1)
$
118.9

 
$
75.4

 
$
126.3

 
$
71.6

Other funds(2)
68.9

 
—

 
79.9

 
—

 
$
187.8

 
$
75.4

 
$
206.2

 
$
71.6

___________________________________________________________

(1)
These funds primarily invest in a broad range of private equity funds, as well as making direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds.  
(2)
These are multi-disciplinary funds that invest across various asset classes and strategies, including long/short equity, credit and real estate. Investments are generally redeemable on a daily or quarterly basis.
Summary of other financial liabilities not carried at fair value
The following table summarizes the Company's other financial liabilities not carried at fair value:
 
December 31, 2012
 
September 30, 2013
 
 
 
Carrying Value
 
Fair Market Value
 
Carrying Value
 
Fair Market Value
 
Fair Value Hierarchy
Senior notes
$
340.0

 
$
351.8

 
$
340.0

 
$
324.2

 
Level 2
Senior convertible securities
450.1

 
510.6

 
—

 
—

 
Level 2
Junior convertible trust preferred securities
515.5

 
719.9

 
517.9

 
870.2

 
Level 2