Fair value is the price that would be received upon the sale of an asset or paid upon the transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk.

The Company applied FASB ASC 820— Fair Value Measurement, which provides guidance for using fair value to measure assets and liabilities by defining fair value and establishing the framework for measuring fair value. ASC 820 applies to financial and nonfinancial instruments that are measured and reported on a fair value basis. The three-level

hierarchy of fair value measurements is based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The fair value hierarchy requires the use of observable market data when available and consists of the following levels:

The Company has included a tabular disclosure for financial assets and liabilities that are measured at fair value on a recurring basis in the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020, respectively.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 (in millions):


	March 31, 2021
	Total		Level 1		Level 2		Level 3
Assets:
U.S. Treasury securities	$	71.5	$	71.5	$	—	$	—
Marketable securities:
Mutual funds		14.6		14.6		—		—
Money market funds		9.4		9.4		—		—
Total assets	$	95.5	$	95.5	$	—	$	—
Liabilities:
Contingent consideration liabilities	$	32.1	$	—	$	—	$	32.1
Total liabilities	$	32.1	$	—	$	—	$	32.1


	December 31, 2020
	Total		Level 1		Level 2		Level 3
Assets:
U.S. Treasury securities	$	67.9	$	67.9	$	—	$	—
Marketable securities:
Mutual funds		15.9		15.9		—		—
Money market funds		8.6		8.6		—		—
Total assets	$	92.4	$	92.4	$	—	$	—
Liabilities:
Contingent consideration liabilities	$	32.7	$	—	$	—	$	32.7
Total liabilities	$	32.7	$	—	$	—	$	32.7

The following is a description of the Company’s valuation methodologies used for instruments measured at fair value on a recurring basis:

Financial Investments

Financial investments consist of highly liquid U.S. Treasury securities and marketable securities held in a trust for the Company’s non-qualified retirement and benefit plans, also referred to as deferred compensation plan assets. The deferred compensation plan assets have an equal and offsetting deferred compensation plan liability based on the value of the deferred compensation plan assets. These securities are valued by obtaining feeds from a number of live data sources, including active market makers and inter dealer brokers and therefore categorized as Level 1. No material

adjustments were made to the carrying value of our financial investments for the period ended March 31, 2021. See Note 15 (“Employee Benefit Plans”) for more information.

Contingent Consideration Liabilities

In connection with the acquisitions of Hanweck and MATCHNow, as well as the acquisition of assets of FT Options and Trade Alert, the Company entered into contingent consideration arrangements with the former owners. The total fair value of the liabilities at March 31, 2021 was $32.1 million. That value is based on the Company’s estimate of the likelihood that certain performance targets in the respective acquisition agreements are expected to be accomplished. Because the fair value measurements relating to the contingent consideration liabilities are subject to management judgment, measurement uncertainty is inherent in the valuation of the contingent consideration liabilities as of the reporting date. Based on the recorded balance of the liabilities, any measurement uncertainty related to this Level 3 measurement is immaterial as of March 31, 2021.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets, such as goodwill and intangible assets, are measured at fair value on a non-recurring basis. For goodwill, the process involves using a market approach and income approach (using discounted estimated cash flows) to determine the fair value of each reporting unit on a stand-alone basis. That fair value is compared to the carrying amount of the reporting unit, including its recorded goodwill. In connection with the annual impairment evaluation of goodwill and indefinite life intangibles, impairment is considered to have occurred if the fair value of the reporting unit is lower than the carrying amount of the reporting unit. For the intangible assets, the process also involves using a discounted cash flow method to determine the fair value of each intangible asset. Impairment is considered to have occurred if the fair value of the intangible asset is lower than its carrying amount. The Company did not perform an impairment test during the three months ended March 31, 2021, as there were no market events that would indicate it was more likely than not that these assets were impaired. These measurements are considered Level 3 and these assets are recognized at fair value if they are deemed to be impaired.

Equity investments without readily determinable fair values that are valued using the measurement alternative are measured at fair value on a non-recurring basis. During the three months ended March 31, 2021, no observable transactions or impairments materially impacted the measurements of the investments accounted for as other equity investments.

Property held for sale as of March 31, 2021 was measured at fair value, less selling costs at March 31, 2021. See Note 5 (“Property and Equipment, Net”) for more information on property held for sale.

Fair Value of Assets and Liabilities

The following tables present the Company’s fair value hierarchy for certain assets and liabilities held by the Company as of March 31, 2021 and December 31, 2020 (in millions):


	March 31, 2021
	Total		Level 1		Level 2		Level 3
Assets:
U.S. Treasury securities	$	71.5	$	71.5	$	—	$	—
Deferred compensation plan assets		24.0		24.0		—		—
Total assets	$	95.5	$	95.5	$	—	$	—
Liabilities:
Contingent consideration liabilities	$	32.1	$	—	$	—	$	32.1
Deferred compensation plan liabilities		24.0		24.0		—		—
Debt		1,187.8		—		1,187.8		—
Total liabilities	$	1,243.9	$	24.0	$	1,187.8	$	32.1


	December 31, 2020
	Total		Level 1		Level 2		Level 3
Assets:
U.S. Treasury securities	$	67.9	$	67.9	$	—	$	—
Deferred compensation plan assets		24.5		24.5		—		—
Total assets	$	92.4	$	92.4	$	—	$	—
Liabilities:
Contingent consideration liabilities	$	32.7	$	—	$	—	$	32.7
Deferred compensation plan liabilities		24.5		24.5		—		—
Debt		1,319.1		—		1,319.1		—
Total liabilities	$	1,376.3	$	24.5	$	1,319.1	$	32.7

Certain financial assets and liabilities, including cash and cash equivalents, accounts receivable, income tax receivable, accounts payable and Section 31 fees payable, are not measured at fair value on a recurring basis, but the carrying values approximate fair value due to their liquid or short-term nature.

Debt

The debt balance consists of fixed rate, Senior Notes and a floating rate, Term Loan Agreement. The fair values of the Senior Notes are classified as Level 2 under the fair value hierarchy and are estimated using prevailing markets quotes. The fair value of the Term Loan Agreement approximates the carrying amount and is considered a Level 2 measurement.

At March 31, 2021 and December 31, 2020, the fair values of the Company’s debt obligations were as follows (in millions):


	Fair Value
	March 31, 2021		December 31, 2020
Term Loan Agreement	$	50.0	$	70.0
3.650% Senior Notes		714.9		744.0
1.625% Senior Notes		466.8		505.1

Information on Level 3 Financial Liabilities

The following table sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities during the three months ended March 31, 2021 (in millions):


	Level 3 Financial Liabilities for the Three Months Ended March 31, 2021
	Balance at		Realized (gains)						Foreign
	Beginning of		losses during						Currency		Balance at
	Period		period		Additions		Settlements		Translation		End of Period
Liabilities
Contingent consideration liabilities	$	32.7	$	—	$	—	$	(0.8)	$	0.2	$	32.1
Total liabilities	$	32.7	$	—	$	—	$	(0.8)	$	0.2	$	32.1