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FAIR VALUE MEASUREMENTS.
9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Fair value measurements
NOTE 7
– FAIR VALUE MEASUREMENTS.

We determine the fair value of our investments using the following broad levels of inputs as defined by related accounting standards:

Level 1 – quoted prices in active markets for identical securities.
Level 2 – observable inputs other than Level 1 quoted prices including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, and credit risk. These inputs are based on market data obtained from independent sources.
Level 3 – unobservable inputs reflecting our own assumptions based on the best information available. We do not value any investments using Level 3 inputs.

These levels are not necessarily an indication of the risk or liquidity associated with our investments. There have been no transfers in or out of the levels. The following table summarizes our investments (in millions) that are recognized in our condensed consolidated balance sheets using fair value measurements determined based on the differing levels of inputs.
 
Level 1
 
Level 2
December 31, 2012
 
 
 
Cash equivalents
$
732.8

 
 
Investments in sponsored funds - available-for-sale
1,140.1

 
 
Investments held as trading
18.1

 
$
77.2

Debt securities held by savings bank subsidiary

 
136.0

Total
$
1,891.0

 
$
213.2

 
 
 
 
September 30, 2013
 
 
 
Cash equivalents
$
1,494.8

 
 
Investments in sponsored funds - available-for-sale
1,307.8

 
 
Investments held as trading
33.5

 
$
12.8

Debt securities held by savings bank subsidiary

 
125.0

Total
$
2,836.1

 
$
137.8



Customer deposits at our savings bank subsidiary are not measured at fair value in our condensed consolidated balance sheets. At December 31, 2012, the estimated fair value of these deposits, based on discounting expected cash outflows at maturity dates that range up to five years using current interest rates offered for deposits with the same dates of maturity, was $157.8 million. At September 30, 2013, the carrying value of these deposits approximates fair value. The fair value was based on the price to transfer the customer deposit obligation to a market participant as evidenced in the agreement to sell our savings bank subsidiary. These fair values were determined using Level 2 inputs.