Fair Value

6 Months Ended

Jun. 30, 2011

Fair Value

Fair Value

11. FAIR VALUE

Fair value measurements are established using a three level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following categories:

• Level 1: Quoted prices for identical assets or liabilities in active markets.

• Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Short-term investments in this category are valued using discounted cash flow techniques with all significant inputs derived from or corroborated by observable market data. Derivative assets and liabilities in this category are valued using models that consider various assumptions and information from market-corroborated sources. The models used are primarily industry-standard models that consider items such as quoted prices, market interest rate curves applicable to the instruments being valued as of the end of each period, discounted cash flows, volatility factors, current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace.

• Level 3: Unobservable inputs that are not corroborated by market data.

Items measured at fair value on a recurring basis

	As of June 30, 2011
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	23.8	$	—	$	—	$	23.8
Bank time deposits with original maturities of three months or less		—		82.5		—		82.5
Short-term investments:
Bank time deposits with original maturities of greater than three months		—		—		—		—
Derivative assets		—		1.3		—		1.3
Diversified investments associated with the ESUP		.9		—		—		.9
Total assets	$	24.7	$	83.8	$	—	$	108.5
Liabilities:
Derivative liabilities	$	.7	$	5.1	$	—	$	5.8
Liabilities associated with the ESUP		.9		—		—		.9
Total liabilities	$	1.6	$	5.1	$	—	$	6.7

	As of December 31, 2010
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	101.7	$	—	$	—	$	101.7
Bank time deposits with original maturities of three months or less		—		38.1		—		38.1
Short-term investments:
Bank time deposits with original maturities of greater than three months		—		22.8		—		22.8
Derivative assets		—		5.3		—		5.3
Total assets	$	101.7	$	66.2	$	—	$	167.9
Liabilities:
Derivative liabilities	$	1.1	$	.2	$	—	$	1.3
Total liabilities	$	1.1	$	.2	$	—	$	1.3

The fair value for fixed rate debt was greater than its $730.0 carrying value by $47.0 at June 30, 2011 and greater than its $730.0 carrying value by $6.0 at December 31, 2010.

Items measured at fair value on a non-recurring basis

The primary areas in which we use fair value measurements of non-financial assets and liabilities are allocating purchase price to the assets and liabilities of acquired companies and evaluating long-term assets for potential impairment.

Goodwill

We perform an annual review for potential goodwill impairment in June of each year and as triggering events occur. The goodwill impairment review performed in June 2011 indicated no goodwill impairments.

The ten reporting units for goodwill purposes are one level below the operating segments, and are the same as the business groups disclosed in Item 1. Business in Form 10-K. Fair market values of the reporting units are estimated using a discounted cash flow model and comparable market values for similar entities using price to earnings ratios. Key assumptions and estimates used in the cash flow model include discount rate, internal sales growth, margins, capital expenditure requirements, and working capital requirements. Recent performance of the reporting unit is an important factor, but not the only factor, in the assessment.

Reporting units' fair values in relation to their respective carrying values and significant assumptions used in the June 2011 review are presented in the table below. If actual results differ from estimates used in these calculations, we could incur future impairment charges.

Percentage of fair value in excess of carrying value	June 30, 2011 goodwill value	10-year compound annual growth rate range	Terminal values long- term growth rate	Discount rate ranges
15-40%	$542.6	2.0% - 6.5%	3%	9.5% - 11.5%
40%+	404.1	2.3% - 5.2%	3%	8.5%
	$946.7	2.0% - 6.5%	3%	8.5% - 11.5%

Fixed Assets

We test long-lived assets for recoverability at year-end and whenever events or changes in circumstances indicate the carrying value may not be recoverable. The table below summarizes fixed asset impairments for the periods presented.

	Six Months Ended June 30,				Three Months Ended June 30,
	2011		2010		2011		2010
Continuing operations	$	3.4	$	1.4	$	.4	$	—
Discontinued operations		—		.9		—		—
Total asset impairments	$	3.4	$	2.3	$	.4	$	—

Fair value and the resulting impairment charges were based primarily upon offers from potential buyers or third party estimates of fair value less selling costs.