Fair Value

The following table summarizes financial instruments measured at fair value, on a recurring basis, as of March 31, 2014:



(in millions)	Total			Level 1		Level 2			Level 3
Assets
Trading securities	$	10.8		$	10.8	$	—		$	—
Total	$	10.8		$	10.8	$	—		$	—

Liabilities
Contingent obligation	$	(2.2	)	$	—	$	—		$	(2.2	)
Interest rate swaps	(1.2		)	—		(1.2		)	—
Total	$	(3.4	)	$	—	$	(1.2	)	$	(2.2	)

Level 1 instruments consist of exchange-traded mutual funds and publicly traded equity investments valued at their current market prices, with unrealized gains and losses included in net income. These securities relate to a nonqualified deferred compensation plan held in trust for the benefit of plan participants and are included in other marketable securities on our balance sheet. There were no significant realized or unrealized gains or losses for these securities for any of the periods presented.

Level 2 instruments consist of interest rate swaps that are further discussed in Note 9, “Debt.” We determined the fair value of the interest rate swaps using standard valuation models with market-based observable inputs including forward and spot exchange rates and interest rate curves. The total fair value of the swap instruments as of March 31, 2014, was a liability of $1.2 million and was included in other liabilities on our consolidated balance sheet. The net of tax unrealized loss on the swap instruments as of March 31, 2014, of $0.7 million was included in accumulated other comprehensive income (loss).

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 the expected earnings of eScan, and will be assessed each reporting period. The obligation has a maximum payout of $17.0 million, contingent upon eScan meeting certain performance requirements in future years, but is currently valued at $2.2 million. Any remeasurements of the fair value of this contingent obligation prior to payout will result in a gain or loss reflected in our consolidated statements of income.