Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables provide a summary of assets and liabilities measured at fair value on a recurring basis and as reported in the Condensed Consolidated Balance Sheets (in millions):



	Fair Value Measurements at March 31, 2014 Using:
	Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Remaining Inputs			Significant Other Unobservable Remaining Inputs
	(Level 1)		(Level 2)			(Level 3)		Total
Assets measured at fair value:
Available-for-sale securities:
Asset-backed securities	$	—	$	135.3		$	—	$	135.3
Certificates of deposit	—		12.0			—		12.0
Commercial paper	—		1.2			—		1.2
Corporate debt securities	—		412.2			—		412.2
Foreign government debt securities	—		5.0			—		5.0
Government-sponsored enterprise obligations	—		88.3			—		88.3
Money market funds⁽¹⁾	1,183.0		—			—		1,183.0
Mutual funds⁽²⁾	4.1		—			—		4.1
Publicly-traded equity securities	6.4		—			—		6.4
U.S. government securities	140.9		100.7			—		241.6
Total available-for-sale securities	1,334.4		754.7			—		2,089.1
Trading securities in mutual funds⁽³⁾	16.1		—			—		16.1
Derivative assets:
Foreign exchange contracts	—		3.7			—		3.7
Total assets measured at fair value	$	1,350.5	$	758.4		$	—	$	2,108.9
Liabilities measured at fair value:
Derivative liabilities:
Foreign exchange contracts	$	—	$	(0.1	)	$	—	$	(0.1	)
Total liabilities measured at fair value	$	—	$	(0.1	)	$	—	$	(0.1	)

Total assets measured at fair value, reported as:
Cash equivalents	$	1,116.3	$	18.8		$	—	$	1,135.1
Restricted investments	70.8		—			—		70.8
Short-term investments	135.7		242.4			—		378.1
Long-term investments	27.7		493.5			—		521.2
Prepaid expenses and other current assets	—		3.7			—		3.7
Total assets measured at fair value	$	1,350.5	$	758.4		$	—	$	2,108.9

Total liabilities measured at fair value, reported as:
Other accrued liabilities	$	—	$	(0.1	)	$	—	$	(0.1	)
Total liabilities measured at fair value	$	—	$	(0.1	)	$	—	$	(0.1	)

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⁽¹⁾	Balance includes $66.7 million of restricted investments measured at fair market value related to the Company's D&O Trust and acquisitions related escrows.


⁽²⁾	Balance relates to restricted investments measured at fair market value related to the Company's India Gratuity Trust.


⁽³⁾	Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.



	Fair Value Measurements at December 31, 2013 Using:
	Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Remaining Inputs			Significant Other Unobservable Remaining Inputs
	(Level 1)		(Level 2)			(Level 3)		Total
Assets measured at fair value:
Available-for-sale securities:
Asset-backed securities	$	—	$	249.9		$	—	$	249.9
Certificates of deposit	—		27.6			—		27.6
Commercial paper	—		6.9			—		6.9
Corporate debt securities	—		815.3			—		815.3
Foreign government debt securities	—		10.7			—		10.7
Government-sponsored enterprise obligations	—		306.2			—		306.2
Money market funds⁽¹⁾	1,043.7		—			—		1,043.7
Mutual funds⁽²⁾	4.0		—			—		4.0
Publicly-traded equity securities	114.6		—			—		114.6
U.S. government securities	197.2		106.1			—		303.3
Total available-for-sale securities	1,359.5		1,522.7			—		2,882.2
Trading securities in mutual funds⁽³⁾	15.4		—			—		15.4
Derivative assets:
Foreign exchange contracts	—		3.0			—		3.0
Total assets measured at fair value	$	1,374.9	$	1,525.7		$	—	$	2,900.6
Liabilities measured at fair value:
Derivative liabilities:
Foreign exchange contracts	$	—	$	(0.7	)	$	—	$	(0.7	)
Total liabilities measured at fair value	$	—	$	(0.7	)	$	—	$	(0.7	)

Total assets measured at fair value, reported as:
Cash equivalents	$	965.1	$	31.1		$	—	$	996.2
Restricted investments	87.6		—			—		87.6
Short-term investments	246.5		315.4			—		561.9
Long-term investments	75.7		1,176.2			—		1,251.9
Prepaid expenses and other current assets	—		3.0			—		3.0
Total assets measured at fair value	$	1,374.9	$	1,525.7		$	—	$	2,900.6

Total liabilities measured at fair value, reported as:
Other accrued liabilities	$	—	$	(0.7	)	$	—	$	(0.7	)
Total liabilities measured at fair value	$	—	$	(0.7	)	$	—	$	(0.7	)

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⁽¹⁾	Balance includes $83.6 million of restricted investments measured at fair market value related to the Company's D&O Trust and acquisitions related escrows.


⁽²⁾	Balance relates to restricted investments measured at fair market value related to the Company's India Gratuity Trust.


⁽³⁾	Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.

The Company's Level 2 available-for-sale fixed income securities are priced using quoted market prices for similar instruments or non-binding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, or alternative pricing sources with reasonable levels of price transparency which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets. The Company's derivative instruments are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs. The Company's policy is to recognize asset or liability transfers among Level 1, Level 2, and Level 3 at the beginning of the quarter in which a change in circumstances resulted in a transfer. During the three months ended March 31, 2014, the Company had no transfers between levels of the fair value hierarchy of its assets or liabilities measured at fair value.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain of the Company's assets, including intangible assets, goodwill, and privately-held investments, are measured at fair value on a nonrecurring basis if impairment is indicated.

Privately-held investments, which are normally carried at cost, are measured at fair value due to events and circumstances that the Company identified as significantly impacting the fair value of investments. The Company estimates the fair value of its privately-held investments using an analysis of the financial condition and near-term prospects of the investee, including recent financing activities and the investee's capital structure. Purchased intangible assets are measured at fair value primarily using discounted cash flow projections.

As of March 31, 2014, the Company had no assets measured at fair value on a nonrecurring basis. As of December 31, 2013, the Company had $2.0 million of privately-held investments measured at fair value on a nonrecurring basis and were classified as Level 3 assets due to the absence of quoted market prices and inherent lack of liquidity.

As of March 31, 2014 and December 31, 2013, the Company had no liabilities measured at fair value on a nonrecurring basis.

Assets and Liabilities Not Measured at Fair Value

The carrying amounts of the Company's accounts receivable, financing receivables, accounts payable, and other accrued liabilities approximate fair value due to their short maturities. As of March 31, 2014 and December 31, 2013, the estimated fair value of the Company's long-term debt in the Condensed Consolidated Balance Sheets was approximately $1,398.6 million and $1,023.5 million, respectively, based on observable market inputs (Level 2).