XML 25 R12.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Fair Value Measurements | 3 Months Ended
--- | ---
Mar. 31, 2017
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements The following tables summarize the Company’s financial assets and liabilities that are measured at fair value on a recurring basis:
|  |  | Fair Value Measurements
| December 31, 2016 |
|  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Other Unobservable Inputs (Level 3)
Financial Assets |  |  |  |  |  |  |
Cash equivalents | $ | 64.1 |  |  | $ | 64.1 |  |  | $ | — |  |  | $ | — |
Investments in marketable securities(1) |  |  |  |  |  |  |
Trading securities | 40.5 |  |  | 40.5 |  |  | — |  |  | — |
Available-for-sale securities | 81.9 |  |  | 81.9 |  |  | — |  |  | — |
Other investments | 3.4 |  |  | 3.4 |  |  | — |  |  | — |
Foreign currency forward contracts(2) | 0.6 |  |  | — |  |  | 0.6 |  |  | — |
Financial Liabilities(2) |  |  |  |  |  |  |
Contingent payment arrangements | $ | 8.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 8.6 |
Affiliate equity obligations | 12.1 |  |  | — |  |  | — |  |  | 12.1 |
Foreign currency forward contracts | 0.5 |  |  | — |  |  | 0.5 |  |  | — |
|  |  | Fair Value Measurements
| March 31, 2017 |
|  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Other Unobservable Inputs (Level 3)
Financial Assets |  |  |  |  |  |  |
Cash equivalents | $ | 26.3 |  |  | $ | 26.3 |  |  | $ | — |  |  | $ | — |
Investments in marketable securities(1) |  |  |  |  |  |  |
Trading securities | 48.7 |  |  | 48.7 |  |  | — |  |  | — |
Available-for-sale securities | 66.8 |  |  | 66.8 |  |  | — |  |  | — |
Foreign currency forward contracts(2) | 0.3 |  |  | — |  |  | 0.3 |  |  | — |
Financial Liabilities(2) |  |  |  |  |  |  |
Contingent payment arrangements | $ | 8.9 |  |  | $ | — |  |  | $ | — |  |  | $ | 8.9 |
Affiliate equity obligations | 91.5 |  |  | — |  |  | — |  |  | 91.5 |
Foreign currency forward contracts | 0.1 |  |  | — |  |  | 0.1 |  |  | — |
__________________________
(1) | Principally investments in equity securities.
(2) | Amounts are presented within Other assets or Other liabilities.
The following are descriptions of the significant financial assets and liabilities measured at fair value and the fair value methodologies used. Cash equivalents consist primarily of highly liquid investments in daily redeeming money market funds, without enacted liquidity fees or redemption gates. Investments in marketable securities consist primarily of investments in publicly traded securities and in funds advised by Affiliates that are valued at NAV. Publicly traded securities and funds advised by Affiliates are valued using unadjusted quoted market prices for identical instruments in active markets and are classified as level 1. Publicly traded securities valued using quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active and are classified as level 2. Contingent payment arrangements represent the present value of the expected future settlement of contingent payment arrangements related to the Company’s investments in consolidated Affiliates. The significant unobservable inputs that are used in the fair value measurement of these obligations are growth and discount rates. Increases in the growth rate result in a higher obligation while increases in the discount rate result in a lower obligation. Affiliate equity obligations include agreements to repurchase Affiliate equity. The significant unobservable inputs that are used in the fair value measurement of the agreements to repurchase Affiliate equity are growth and discount rates. Increases in the growth rate result in a higher obligation while increases in the discount rate result in a lower obligation. Foreign currency forward contracts use model-derived valuations in which all significant inputs are observable in active markets to determine fair value and are classified as level 2. It is the Company’s policy to value financial assets or liabilities transferred as of the beginning of the period in which the transfer occurs. There were no significant transfers of financial assets or liabilities between level 1 and level 2 in the three months ended March 31, 2016 and 2017. Level 3 Financial Assets and Liabilities The following tables present the changes in level 3 liabilities:
| For the Three Months Ended March 31,
| 2016 | 2017
| Contingent Payment Arrangements |  | Affiliate Equity Obligations |  |  | Contingent Payment Arrangements |  | Affiliate Equity Obligations
Balance, beginning of period | $ | 10.2 |  |  | $ | 62.3 |  |  |  | $ | 8.6 |  |  | $ | 12.1 |
Net (gains) losses | (2.4 | ) | (1) | — |  |  |  | 0.3 |  | (1) | — |
Purchases and issuances | — |  |  | 30.1 |  |  |  | — |  |  | 99.6 |
Settlements and reductions | — |  |  | (56.8 | ) |  |  | — |  |  | (20.2 | )
Balance, end of period | $ | 7.8 |  |  | $ | 35.6 |  |  |  | $ | 8.9 |  |  | $ | 91.5 |
Net change in unrealized (gains) losses relating to instruments still held at the reporting date | $ | (2.4 | ) | (1) | $ | — |  |  |  | $ | 0.3 |  | (1) | $ | — |
___________________________
(1) | Accretion and changes in the expected value of the Company’s contingent payment arrangements are recorded in Imputed interest expense and contingent payment arrangements.
The following table presents certain quantitative information about the significant unobservable inputs used in valuing the Company’s level 3 financial liabilities:
| Quantitative Information About Level 3 Fair Value Measurements
| Valuation Techniques |  | Unobservable Input |  | Fair Value at December 31, 2016 |  | Range at December 31, 2016 |  | Fair Value at March 31, 2017 |  | Range at March 31, 2017
Contingent payment arrangements | Discounted cash flow |  | Growth rates |  | $ | 8.6 |  |  | 3% - 8% |  | $ | 8.9 |  |  | 3% - 8%
|  |  | Discount rates |  |  |  |  | 14% - 15% |  |  |  |  | 14% - 16%
Affiliate equity obligations | Discounted cash flow |  | Growth rates |  | 12.1 |  |  | 4% - 10% |  | 91.5 |  |  | 4% - 10%
|  |  | Discount rates |  |  |  |  | 15% - 16% |  |  |  |  | 12% - 17%
Investments in Certain Entities that Calculate Net Asset Value The Company uses the NAV of certain investments as their fair value. The NAVs provided by the investees have been derived from the fair values of the underlying assets and liabilities as of the measurement dates. The following table summarizes the nature of these investments and any related liquidity restrictions or other factors that may impact the ultimate value realized:
| December 31, 2016 |  | March 31, 2017
Category of Investment | Fair Value |  | Unfunded Commitments |  | Fair Value |  | Unfunded Commitments
Private equity funds(1) | $ | 137.8 |  |  | $ | 92.2 |  |  | $ | 141.9 |  |  | $ | 97.1 |
Other funds(2) | 9.7 |  |  | — |  |  | 6.9 |  |  | — |
Other investments | 147.5 |  |  | 92.2 |  |  | 148.8 |  |  | 97.1 |
Marketable securities | 27.1 |  |  | — |  |  | 36.1 |  |  | — |
Total | $ | 174.6 |  |  | $ | 92.2 |  |  | $ | 184.9 |  |  | $ | 97.1 |
___________________________
(1) | To determine the fair value, the Company uses NAV as a practical expedient one quarter in arrears (adjusted for current period calls and distributions). These funds primarily invest in a broad range of private equity funds, as well as making direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds, which is generally up to 15 years.
(2) | To determine the fair value, the Company uses NAV as a practical expedient. These are multi-disciplinary funds that invest across various asset classes and strategies, including long/short equity, credit and real estate. Investments are generally redeemable on a daily, monthly or quarterly basis.
Other Financial Assets and Liabilities Not Carried at Fair Value The carrying amount of Receivables and Payables and accrued liabilities approximates fair value because of the short-term nature of these instruments. The carrying value of notes receivable approximates fair value because interest rates and other terms are at market rates. The carrying value of the credit facilities approximates fair value because the debt has variable interest based on selected short-term rates. The following table summarizes the Company’s other financial liabilities not carried at fair value:
| December 31, 2016 |  | March 31, 2017 |  |
| Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value |  | Fair Value Hierarchy
Senior notes | $ | 945.1 |  |  | $ | 936.0 |  |  | $ | 945.3 |  |  | $ | 962.2 |  |  | Level 2
Convertible securities | 307.5 |  |  | 466.9 |  |  | 308.0 |  |  | 489.5 |  |  | Level 2

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration