Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of assets and liabilities measured at fair value on a recurring basis

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis were as follows:


	September 30, 2020								December 31, 2019
(In millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets
Investments

Equity securities(a)	$	33.2	$	33.2	$	—	$	—	$	54.8	$	54.8	$	—	$	—
Money market fund	1.6		—		1.6		—		1.5		—		1.5		—
Stable value fund(b)	0.8		—		—		—		2.1		—		—		—

Held-to-maturity debt securities	71.9		—		71.9		—		71.9		—		71.9		—
Derivative financial instruments
Synthetic bonds - call option premium	—		—		—		—		4.3		—		4.3		—
Foreign exchange contracts	333.6		—		333.6		—		137.1		—		137.1		—
Assets held for sale	56.8		—		—		56.8		25.8		—		—		25.8
Total assets	$	497.9	$	33.2	$	407.1	$	56.8	$	297.5	$	54.8	$	214.8	$	25.8
Liabilities
Redeemable financial liability	$	281.7	$	—	$	—	$	281.7	$	268.8	$	—	$	—	$	268.8
Derivative financial instruments
Synthetic bonds - embedded derivatives	—		—		—		—		4.3		—		4.3		—
Foreign exchange contracts	315.9		—		315.9		—		189.7		—		189.7		—
Liabilities held for sale	—		—		—		—		9.3		—		—		9.3
Total liabilities	$	597.6	$	—	$	315.9	$	281.7	$	472.1	$	—	$	194.0	$	278.1

(a)Includes fixed income and other investments measured at fair value.

(b)Certain investments that are measured at fair value using net asset value per share (or its equivalent) have not been classified in the fair value hierarchy.

Schedule of changes in fair value of level 3 mandatorily redeemable financial liabilities

Change in the fair value of our Level 3 mandatorily redeemable financial liability is recorded as interest expense on the consolidated statements of income and is presented below:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2020		2019		2020		2019
Balance at beginning of period	$	219.8	$	412.8	$	268.8	$	408.5
Expenses recognized in net interest expense	(61.9)		(99.1)		(148.2)		(324.0)
Less: Settlements	—		223.1		135.3		443.7
Balance at end of period	$	281.7	$	288.8	$	281.7	$	288.8

Fair Value Measurements, Nonrecurring

The following summarizes impairments of long-lived assets and related post-impairment fair value for the nine months ended September 30, 2020 and 2019:


	Nine Months Ended September 30,
	2020				2019
(In millions)	Impairment		Fair Value (a)		Impairment		Fair Value (a)
Long-lived assets	$	169.6	$	353.3	$	127.5	$	104.0	(b)

(a)Measured as of the impairment date using the income approach and a 10.8% risk-adjusted rate of interest, resulting in a Level 3 fair value measurement.

(b)Includes $104.0 million fair value of vessels determined using the transaction price of a similar vessel, resulting in a Level 2 fair value measurement.