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Fair Value Measurements | 3 Months Ended
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Mar. 31, 2017
Fair Value Disclosures [Abstract] |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis were as follows:
| March 31, 2017 |  | December 31, 2016
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonqualified Plan: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Traded securities (1) | $ | 26.2 |  |  | $ | 26.2 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Money market fund | 1.7 |  |  | — |  |  | 1.7 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Stable value fund (2) | 0.8 |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |
Available-for-sale securities | 29.5 |  |  | 29.5 |  |  | — |  |  | — |  |  | 27.9 |  |  | 27.9 |  |  | — |  |  | — |
Derivative financial instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Synthetic bonds - call option premium | 108.4 |  |  | — |  |  | 108.4 |  |  | — |  |  | 180.1 |  |  | — |  |  | 180.1 |  |  | — |
Foreign exchange contracts | 104.9 |  |  | — |  |  | 104.9 |  |  | — |  |  | 57.9 |  |  | — |  |  | 57.9 |  |  | — |
Total assets | $ | 271.5 |  |  | $ | 55.7 |  |  | $ | 215.0 |  |  | $ | — |  |  | $ | 265.9 |  |  | $ | 27.9 |  |  | $ | 238.0 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Redeemable financial liability | $ | 243.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 243.7 |  |  | $ | 176.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 176.0 |
Derivative financial instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Synthetic bonds - embedded derivatives | 108.4 |  |  | — |  |  | 108.4 |  |  | — |  |  | 180.1 |  |  | — |  |  | 180.1 |  |  | — |
Foreign exchange contracts | 230.8 |  |  | — |  |  | 230.8 |  |  | — |  |  | 230.6 |  |  | — |  |  | 230.6 |  |  | — |
Total liabilities | $ | 582.9 |  |  | $ | — |  |  | $ | 339.2 |  |  | $ | 243.7 |  |  | $ | 586.7 |  |  | $ | — |  |  | $ | 410.7 |  |  | $ | 176.0 |
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(1) | Includes equity securities, fixed income and other investments measured at fair value.
(2) | Certain investments that are measured at fair value using net asset value per share (or its equivalent) have not been classified in the fair value hierarchy.
Non-qualified plan—The fair value measurement of our traded securities is based on quoted prices that we have the ability to access in public markets. Our stable value fund and money market fund are valued at the net asset value of the shares held at the end of the quarter, which is based on the fair value of the underlying investments using information reported by our investment advisor at quarter-end. Available-for-sale investments—The fair value measurement of our available-for-sale investments is based on quoted prices that we have the ability to access in public markets. Mandatorily redeemable financial liability—We determined the fair value of the mandatorily redeemable financial liability using a discounted cash flow model. Refer to Note 11 for further information related to this liability. The key assumption used in applying the income approach is the expected dividends to be distributed in the future to the noncontrolling interest holders. Expected dividends to be distributed is based on the noncontrolling interests’ share of the expected profitability of the underlying contract, the selected discount rate, and the overall timing of completion of the project. A decrease of one percentage point in the discount rate would have increased the liability by $5.4 million as of March 31, 2017. The fair value measurement is based upon significant unobservable inputs not observable in the market and is consequently classified as a Level 3 fair value measurement. Changes in the fair value of our Level 3 mandatorily redeemable financial liability is presented below. Since the liability was created during the three months ended December 31, 2016, no changes in fair value are presented for the prior period.
(In millions) |  | Three Months Ended March 31, 2017
Balance at beginning of period |  | $ | 176.0 |
Remeasurement adjustment included in earnings |  | 67.7 |
Settlements |  | — |
Balance at end of period |  | $ | 243.7 |
Derivative financial instruments—We use the income approach as the valuation technique to measure the fair value of foreign currency derivative instruments on a recurring basis. This approach calculates the present value of the future cash flow by measuring the change from the derivative contract rate and the published market indicative currency rate, multiplied by the contract notional values. Credit risk is then incorporated by reducing the derivative’s fair value in asset positions by the result of multiplying the present value of the portfolio by the counterparty’s published credit spread. Portfolios in a liability position are adjusted by the same calculation; however, a spread representing our credit spread is used. Our credit spread, and the credit spread of other counterparties not publicly available are approximated by using the spread of similar companies in the same industry, of similar size and with the same credit rating. At the present time, we have no credit-risk-related contingent features in our agreements with the financial institutions that would require us to post collateral for derivative positions in a liability position. Refer to Note 17 for additional disclosure related to derivative financial instruments. Other fair value disclosures: Fair value of debt—The fair value of our Synthetic Bonds, Senior Notes and private placement notes are as follows:
| March 31, 2017 |  | December 31, 2016
(In millions) | Carrying Amount (1) |  | Fair Value (2) |  | Carrying Amount (1) |  | Fair Value (2)
Synthetic bonds due 2021 | $ | 441.5 |  |  | $ | 633.6 |  |  | $ | 428.0 |  |  | $ | 663.2 |
2.00% Senior Notes due 2017 | 300.0 |  |  | 300.6 |  |  | — |  |  | — |
3.45% Senior Notes due 2022 | 500.0 |  |  | 506.8 |  |  | — |  |  | — |
5.00% Notes due 2020 | 215.0 |  |  | 240.8 |  |  | 209.7 |  |  | 237.7 |
3.40% Notes due 2022 | 161.9 |  |  | 178.0 |  |  | 158.0 |  |  | 177.6 |
3.15% Notes due 2023(a) | 139.5 |  |  | 154.5 |  |  | 136.1 |  |  | 152.0 |
3.15% Notes due 2023 | 134.8 |  |  | 146.5 |  |  | 131.4 |  |  | 142.5 |
4.00% Notes due 2027 | 81.0 |  |  | 90.9 |  |  | 79.0 |  |  | 89.5 |
4.00% Notes due 2032 | 103.8 |  |  | 123.3 |  |  | 101.2 |  |  | 122.1 |
3.75% Notes due 2033 | 104.4 |  |  | 108.2 |  |  | 101.8 |  |  | 104.1 |
_______________________
(1) | Carrying amounts are shown net of unamortized debt discounts and premiums and unamortized debt issuance costs.
(2) | Fair values are based on Level 1 quoted market rates, except for the 4.00% Notes due 2027 and 3.15% Notes Due 2023(a), which are based on Level 2, quoted market rates on similar liabilities with an appropriate credit spread applied.
Other fair value disclosures—The carrying amounts of cash and cash equivalents, trade receivables, accounts payable, short-term debt, commercial paper, debt associated with our bank borrowings, credit facilities, convertible bonds, as well as amounts included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair value. Credit risk—By their nature, financial instruments involve risk, including credit risk, for non-performance by counterparties. Financial instruments that potentially subject us to credit risk primarily consist of trade receivables and derivative contracts. We manage the credit risk on financial instruments by transacting only with what management believes are financially secure counterparties, requiring credit approvals and credit limits, and monitoring counterparties’ financial condition. Our maximum exposure to credit loss in the event of non-performance by the counterparty is limited to the amount drawn and outstanding on the financial instrument. Allowances for losses on trade receivables are established based on collectability assessments. We mitigate credit risk on derivative contracts by executing contracts only with counterparties that consent to a master netting agreement, which permits the net settlement of gross derivative assets against gross derivative liabilities.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
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