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Fair Value
9 Months Ended
Sep. 30, 2014
Fair Value Disclosures [Abstract]  
Fair Value
Fair Value
The following table summarizes financial instruments measured at fair value, on a recurring basis, as of September 30, 2014:
(in millions)
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
Trading securities
 
$
10.9

 
$
6.5

 
$
4.4

 
$

Available for sale securities
 
2.9

 

 
2.9

 

Total
 
$
13.8

 
$
6.5

 
$
7.3

 
$

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Contingent obligation
 
$
(3.7
)
 
$

 
$

 
$
(3.7
)
Interest rate swaps
 
(1.3
)
 

 
(1.3
)
 

Total
 
$
(5.0
)
 
$

 
$
(1.3
)
 
$
(3.7
)


Level 1 instruments consist of exchange-traded mutual funds. Exchange-traded mutual funds are trading securities valued at their current market prices. These securities relate to a nonqualified deferred compensation plan held in trust for the benefit of plan participants.

Level 2 instruments consist of pooled separate accounts, foreign exchange-traded corporate bonds and interest rate swaps. Pooled separate accounts are designated as trading securities valued at net asset values. These securities relate to the nonqualified deferred compensation plan held in trust for the benefit of plan participants. Foreign exchange-traded corporate bonds are available for sale securities valued at their current quoted prices. These securities mature between 2027 and 2033. Interest rate swaps fair values are determined using standard valuation models with market-based observable inputs including forward and spot exchange rates and interest rate curves. See Note 9, “Debt” for additional information regarding interest rate swaps.

Unrealized gains and losses on trading securities are included in net income, while unrealized gains and losses on available for sale securities are included in other comprehensive income. There were no significant realized or unrealized gains or losses on our securities for any of the periods presented.

Level 3 instruments consist of contingent obligations owed to the sellers of e-Scan Data Systems, Inc. (“eScan”), an entity we acquired in 2013. The fair value was determined based on an income approach, using our current expectation of the future earnings of eScan, and is assessed each reporting period. The obligation has a maximum payout of $17.0 million, contingent upon eScan meeting certain performance requirements in 2015 and 2016, and is currently valued at $3.7 million. The increase in the fair value during the third quarter of 2014 of $1.5 million was the result of changes in our expectation of the future performance of eScan and was recorded as an expense in selling, general and administrative expenses in the consolidated statements of income. Any future remeasurements of the fair value prior to payout will result in a gain or loss reflected in our consolidated statements of income.