v2.4.0.8
Fair Value
 6 Months Ended
Jun. 30, 2014
Fair Value Disclosures [Abstract]  
Fair Value
Fair Value
The following table summarizes financial instruments measured at fair value, on a recurring basis, as of June 30, 2014:
(in millions)
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
Trading securities
 
$
10.9

 
$
10.9

 
$
—

 
$
—

Available for sale securities
 
3.0

 
3.0

 
—

 
—

Total
 
$
13.9

 
$
13.9

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Contingent obligation
 
$
(2.2
)
 
$
—

 
$
—

 
$
(2.2
)
Interest rate swaps
 
(2.4
)
 
—

 
(2.4
)
 
—

Total
 
$
(4.6
)
 
$
—

 
$
(2.4
)
 
$
(2.2
)


Level 1 instruments include trading securities which 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. Level 1 instruments also include available for sale securities, which consist of foreign traded corporate bonds maturing between 2027 and 2033. Our trading securities and available for sale securities are included in marketable securities in our consolidated 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.

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 2015 and 2016, 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.