OTHER BALANCE SHEET INFORMATION

9 Months Ended

Sep. 30, 2014

OTHER BALANCE SHEET INFORMATION

NOTE 10. OTHER BALANCE SHEET AND STATEMENT OF OPERATIONS INFORMATION

The following tables contain additional detail related to certain balance sheet captions:

		September 30,		December 31,
		2014		2013
Other current assets:
	Prepaid taxes	$	108.2	$	40.0
	Prepaid expenses		46.1		48.1
	Other		42.9		26.3
Total other current assets		$	197.2	$	114.4
		September 30,		December 31,
		2014		2013
Other assets:
	Investments in joint ventures	$	20.0	$	37.5
	Deposits for real-estate leases		11.8		10.3
	Indemnification assets related to acquisitions		25.7		27.0
	Fixed maturity and open ended mutual funds		43.4		-
	Other		41.3		37.3
Total other assets		$	142.2	$	112.1
		September 30,		December 31,
		2014		2013
Accounts payable and accrued liabilities:
	Salaries and benefits	$	70.5	$	77.1
	Incentive compensation		114.4		135.9
	Profit sharing contribution		2.3		-
	Customer credits, advanced payments and advanced billings		19.9		21.7
	Self-insurance reserves for wholly-owned insurance subsidiary		19.1		27.6
	Dividends		4.9		65.5
	Professional service fees		47.7		32.9
	Interest accrued on debt		14.8		36.3
	Accounts payable		17.6		16.4
	Income taxes		22.1		47.5
	Pension and other retirement employee benefits		7.1		7.0
	Other		79.8		71.0
	Total accounts payable and accrued liabilities	$	420.2	$	538.9
		September 30,		December 31,
		2014		2013
Other liabilities:
	Pension and other retirement employee benefits	$	166.1	$	164.0
	Deferred rent-non-current portion		106.2		106.3
	Interest accrued on UTPs		18.1		18.0
	Legacy and other tax matters		8.6		15.4
	Other		49.0		56.5
	Total other liabilities	$	348.0	$	360.2

Redeemable Noncontrolling Interest:

In connection with the acquisition of Copal, the Company and the non-controlling shareholders entered into a put/call option agreement whereby the Company has the option to purchase from the non-controlling shareholders and the non-controlling shareholders have the option to sell to the Company the remaining 33% ownership interest of Copal Partners Limited based on a strike price to be calculated on pre-determined formulas using a combination of revenue and EBITDA multiples when exercised. The value of the estimated put/call option strike price on the date of acquisition was based on a Monte Carlo simulation model. This model contemplated multiple scenarios which simulated certain of Copal’s revenue, EBITDA margins and equity values to estimate the present value of the expected strike price of the option. In connection with the acquisition of Amba in December 2013, which was combined with Copal to form the Copal Amba reporting unit, the aforementioned revenue and EBITDA multiples set forth in the put/call option were modified to include the results of Amba.The option is subject to a minimum exercise price of $46 million.There is no limit as to the maximum amount of the strike price on the put/call option.

In the third quarter of 2014, the Company notified the non-controlling shareholders that it planned to exercise its call option to acquire the remaining interest of Copal Amba that it does not currently own which is expected to close in the fourth quarter of 2014. In accordance with certain agreements relating to the acquisition of Copal Amba, the Company will incur a 25% premium to the formulaic redemption value of the non-controlling interest.

The following table shows changes in the redeemable noncontrolling interest related to the acquisition of Copal:

			Nine Months Ended		Year Ended
			September 30, 2014		December 31, 2013
(in millions)		Redeemable Noncontrolling Interest
Balance January 1,		$	80.0	$	72.3
	Net earnings		7.2		5.8
	Dividends		(4.9)		(6.0)
	Adjustment to redemption value *		55.3		7.9
Balance		$	137.6	$	80.0
	* The adjustment to the redemption value in the nine months ended September 30, 2014 reflects the aforementioned revisions to the revenue and EBITDA multiples pursuant to the amendment of the put/call agreement which occurred contemporaneously with the acquisition of Amba coupled with growth in the Copal Amba reporting unit.

Noncontrolling Interests:

The following table summarizes the changes in the Company’s noncontrolling interests:

		Nine Months Ended		Year Ended
		September 30, 2014		December 31, 2013
(in millions)		Noncontrolling Interests
Balance January 1,		$	10.9	$	11.4
	Net earnings		5.0		5.7
	Dividends		(5.2)		(6.2)
	ICRA noncontrolling interest*		218.9		-
Balance		$	229.6	$	10.9

* Represents the fair value of the ICRA noncontrolling interest as of the day majority control was acquired.

Other Non-Operating (Expense) Income:

The following table summarizes the components of other non-operating (expense) income:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
FX gain/(loss)	$	7.6	$	(5.8)	$	1.5	$	6.9
Legacy Tax benefit		6.4		-		6.4		-
Joint venture income		2.6		2.5		7.9		7.4
Other		(0.2)		(0.3)		(0.3)		(1.4)
Total	$	16.4	$	(3.6)	$	15.5	$	12.9

Changes in the Company’s self-insurance reserves for claims insured by the Company’s wholly-owned insurance subsidiary,which primarily relate to legal defense costs for claims from prior years, are as follows:

		Nine Months Ended		Year Ended
		September 30,		December 31,
(in millions)		2014		2013
Balance January 1,		$	27.6	$	55.8
	Accruals (reversals), net		(1.2)		(0.9)
	Payments		(7.3)		(27.3)
Balance		$	19.1	$	27.6