Fair Value Measurements

6 Months Ended

Jun. 30, 2017

Fair Value Measurements

Fair Value Measurements

4.Fair Value Measurements

We account for certain assets and liabilities at fair value and classify these assets within a fair value hierarchy (Level 1, Level 2 or Level 3). Our other current assets and our current liabilities have fair values that approximate their carrying values. Assets and liabilities subject to fair value measurements are as follows (in millions):

	As of June 30, 2017
	Level 1		Level 2		Level 3		Balance
Assets
Money market funds(1)	$	579.0	$	––	$	—	$	579.0
Time deposits(2)	––		25.1		—		25.1
U.S. government and agency securities(2)	––		341.7		—		341.7
Corporate debt securities(2)	––		3.9		—		3.9
Total assets	$	579.0	$	370.7	$	—	$	949.7
Liabilities
Contingent consideration(3)	—		—		10.4		10.4
Total liabilities	$	—	$	—	$	10.4	$	10.4

	As of December 31, 2016
	Level 1		Level 2		Level 3		Balance
Assets
Money market funds(1)	$	534.4	$	—	$	—	$	534.4
U.S. government and agency securities(2)	—		19.3		—		19.3
Corporate debt securities(2)	—		10.8		—		10.8
Total assets	$	534.4	$	30.1	$	—	$	564.5
Liabilities
Contingent consideration(3)	—		—		10.4		10.4
Total liabilities	$	—	$	—	$	10.4	$	10.4

(1) Included in cash and cash equivalents on the accompanying consolidated balance sheets.

(2) Included in cash equivalents and current and non-current marketable investments on the accompanying consolidated balance sheets. The fair value of these securities is principally measured or corroborated by trade data for identical securities in which related trading activity is not sufficiently frequent to be considered a Level 1 input or comparable securities that are more actively traded.

(3) Included in non-current liabilities on the accompanying consolidated balance sheets. The fair value of contingent consideration has been estimated using probability-weighted discounted cash flow models (DCFs). The DCFs incorporate Level 3 inputs including estimated discount rates that we believe market participants would consider relevant in pricing and the projected timing and amount of cash flows, which are estimated and developed, in part, based on the requirements specific to each acquisition agreement.

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value because of their short maturities. The fair values of our marketable investments are reported above within the fair value hierarchy. Refer to Note 3—Investments.