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FAIR VALUE

9 Months Ended

Sep. 30, 2020

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2020:


	Level 1		Level 2		Total
Assets:
Available-for-sale securities	$	4.2	$	—	$	4.2
Foreign exchange forward contracts	$	—	$	—	$	—
Total	$	4.2	$	—	$	4.2
Liabilities:
Foreign exchange forward contracts	$	—	$	24.8	$	24.8
Total	$	—	$	24.8	$	24.8

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2019:


	Level 1		Level 2		Total
Assets:
Available-for-sale securities	$	4.3	$	—	$	4.3
Foreign exchange forward contracts	$	—	$	5.6	$	5.6
Total	$	4.3	$	5.6	$	9.9
Liabilities:
Foreign exchange forward contracts	$	—	$	3.8	$	3.8
Total	$	—	$	3.8	$	3.8

Fair Value of Financial Instruments

Our financial instruments include cash and cash equivalents, available-for-sale securities, short-term investments, accounts receivable, debt maturing within one year, accounts payable, long-term debt and foreign exchange forward contracts. The carrying value for cash and cash equivalents, accounts receivable, accounts payable, debt maturing within one year and short-term investments approximate fair value because of the short-term nature of these instruments.

The net asset (liability) amounts recorded in the balance sheet (carrying amount) and the estimated fair values of our remaining financial instruments at September 30, 2020 and December 31, 2019, respectively, consisted of the following:


	September 30, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Available-for-sale securities	$	4.2	$	4.2	$	4.3	$	4.3
Debt maturing within one year	(30.2)		(30.2)		(1.8)		(1.8)
Long-term debt(1)	(1,566.8)		(1,654.7)		(1,590.4)		(1,748.1)
Foreign exchange forward contracts	(24.8)		(24.8)		1.8		1.8

(1) The carrying value of long-term debt is presented net of debt issuance costs and includes any related discount or premium.

The methods and assumptions used to estimate fair value are as follows:

•Available-for-sale securities - The fair values of these investments were the quoted market prices for issues listed on securities exchanges.

•Long-term debt - The fair values of our debt and other financing were determined using Level 2 inputs based on indicative market prices.

•Foreign exchange forward contracts - The fair values of forward contracts were estimated based on quoted forward foreign exchange prices at the reporting date.

- 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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