Fair Value Measurements

3 Months Ended

Apr. 01, 2016

Note 11: Fair Value Measurements

Fair Value of Financial Instruments

Summarized information with respect to certain of the Company's financial assets and liabilities measured at fair value on a recurring basis as of April 1, 2016 and December 31, 2015 is as follows (in millions):



			Fair Value Measurements as of April 1, 2016
Description	Balance as of April 1, 2016		Level 1		Level 2		Level 3
Assets:
Cash and Cash equivalents:
Demand and time deposits	$	18.1	$	18.1	$	—	$	—
Money market funds	33.2		33.2		—		—
Liabilities:
Foreign currency exchange contracts	$	0.1	$	—	$	0.1	$	—
Contingent consideration (See Note 3)	5.0		—		—		5.0



			Fair Value Measurements as of December 31, 2015
Description	Balance as of December 31, 2015		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents:
Demand and time deposits	$	9.5	$	9.5	$	—	$	—
Money market funds	33.2		33.2		—		—
Liabilities:
Designated cash flow hedges	$	0.2	$	—	$	0.2	$	—
Foreign currency exchange contracts	0.1		—		0.1		—
Contingent consideration (See Note 3)	5.0		—		—		5.0

Other

The carrying amounts of other current assets and liabilities, such as accounts receivable and accounts payable, approximate fair value based on the short-term nature of these instruments.

Fair Value of Long-Term Debt, Including Current Portion

The carrying amounts and fair values of the Company’s long-term borrowings (excluding capital lease obligations, real estate mortgages and equipment financing) as of April 1, 2016 and December 31, 2015 are as follows (in millions):



	April 1, 2016				December 31, 2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion
Convertible notes	$	932.2	$	1,004.4	$	925.0	$	1,041.9
Long-term debt	$	362.0	$	361.7	$	386.9	$	386.6

The fair value of the Company's 2.625% Notes, Series B and the 1.00% Notes were estimated based on market prices in active markets (Level 1). The fair value of other long-term debt was estimated based on discounting the remaining principal and interest payments using current market rates for similar debt (Level 2) as of April 1, 2016 and December 31, 2015.

Cost Method Investments

Investments in equity securities that do not qualify for fair value accounting are accounted for under the cost method. Accordingly, the Company accounts for investments in companies that it does not control, or have significant influence over, under the cost method, as applicable. If a decline in the fair value of a cost method investment is determined to be other than temporary, an impairment charge is recorded, and the fair value becomes the new cost basis of the investment. The Company evaluates all of its cost method investments for impairment; however, it is not required to determine the fair value of its investment unless impairment indicators are present.

As of April 1, 2016 and December 31, 2015, the Company’s cost method investments had a carrying value of $12.7 million and $12.3 million, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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