Fair Value Measurements

6 Months Ended

Jun. 30, 2014

Fair value, as defined by the relevant accounting standards, represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For additional information on how the Company measures fair value, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2013.

The following tables reflect assets and liabilities that were measured at fair value on a recurring basis (in millions):



	Fair Value Measurement Using						Assets/ Liabilities at Fair Value
June 30, 2014	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Settlement assets:
State and municipal debt securities	$	—	$	999.0	$	—	$	999.0
State and municipal variable rate demand notes	—		240.6		—		240.6
Other debt securities	—		10.1		—		10.1
Other assets:
Derivatives	—		240.1		—		240.1
Total assets	$	—	$	1,489.8	$	—	$	1,489.8
Liabilities:
Notes and other borrowings	$	—	$	3,975.9	$	—	$	3,975.9
Derivatives	—		243.7		—		243.7
Total liabilities	$	—	$	4,219.6	$	—	$	4,219.6

	Fair Value Measurement Using						Assets/ Liabilities at Fair Value
December 31, 2013	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Settlement assets:
State and municipal debt securities	$	—	$	874.2	$	—	$	874.2
State and municipal variable rate demand notes	—		865.0		—		865.0
Other debt securities	—		11.3		—		11.3
Other assets:
Short-term bond mutual fund	100.2		—		—		100.2
Derivatives	—		224.3		—		224.3
Total assets	$	100.2	$	1,974.8	$	—	$	2,075.0
Liabilities:
Notes and other borrowings	$	—	$	4,343.2	$	—	$	4,343.2
Derivatives	—		223.4		—		223.4
Total liabilities	$	—	$	4,566.6	$	—	$	4,566.6

No non-recurring fair value adjustments were recorded during the three and six months ended June 30, 2014, except those associated with acquisitions. The valuation of assets acquired, as disclosed in Note 3, was derived primarily using unobservable Level 3 inputs, which require significant management judgment and estimation. No non-recurring fair value adjustments were recorded during the three and six months ended June 30, 2013.

Other Fair Value Measurements

The carrying amounts for many of the Company's financial instruments, including cash and cash equivalents, settlement cash and cash equivalents, and settlement receivables and settlement obligations approximate fair value due to their short maturities. The aggregate fair value of the Company's borrowings was based on quotes from multiple banks and excluded the impact of related interest rate swaps. All the assets and liabilities in the above tables were carried at fair value in the Condensed Consolidated Balance Sheets, with the exception of borrowings, which had a carrying value of $3,754.1 million and $4,213.0 million as of June 30, 2014 and December 31, 2013, respectively (see Note 12).

- 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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