19. FAIR VALUE MEASUREMENTS

The Company follows the guidance for fair value measurements and fair value option for financial assets and liabilities, which primarily relate to the Company’s investments and forward contracts, Interest rate swap and other financial assets and liabilities.

This standard includes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions.

Fair values of interest rate swaps are measured using standard valuation models using inputs that are readily available in public markets, or can be derived from observable market transactions, including LIBOR spot and forward rates.

The fair value hierarchy consists of the following three levels:

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Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities.

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Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.

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Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

The following table summarizes our financial assets measured at fair value on a recurring basis as of December 31, 2016:


	(In millions)
	Level 1		Level 2		Level 3		Total
Short term investments
Available for sale securities	$	15.0	$	—	$	—	$	15.0
Term deposits	$	—	$	6.8	$	—		6.8
Interest rate swaps	$	—	$	0.5	$	—		0.5

Total assets measured at fair value	$	15.0	$	7.3	$	—	$	22.3

The following table summarizes our financial assets measured at fair value on a recurring basis as of December 31, 2015:


	Level 1		Level 2		Level 3		Total
Short term investments
Available for sale securities	$	126.5	$	—	$	—	$	126.5
Term deposits	$	—	$	413.7	$	—		413.7

Total assets measured at fair value	$	126.5	$	413.7	$	—	$	540.2