Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value MeasurementsThe 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, 2020
			Level 1		Level 2		Level 3
Financial Assets

Investments in marketable securities	$	74.9	$	25.7	$	49.2	$	—

Derivative financial instruments(1)	3.5		—		3.5		—
Financial Liabilities(2)

Affiliate equity purchase obligations	$	22.0	$	—	$	—	$	22.0

Derivative financial instruments	4.2		—		4.2		—


			Fair Value Measurements
	December 31, 2021
			Level 1		Level 2		Level 3
Financial Assets

Investments in marketable securities	$	78.5	$	64.5	$	14.0	$	—

Derivative financial instruments(1)	0.9		—		0.9		—
Financial Liabilities(2)
Contingent payment obligations	$	40.3	$	—	$	—	$	40.3
Affiliate equity purchase obligations	12.6		—		—		12.6

Derivative financial instruments	(0.8)		—		(0.8)		—

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(1)Amounts are presented within Other assets.

(2)Amounts are presented within Other liabilities.

Level 3 Financial Liabilities

The following table presents the changes in level 3 liabilities:


	For the Years Ended December 31,
	2020				2021
	Contingent Payment Obligations		Affiliate Equity Purchase Obligations		Contingent Payment Obligations		Affiliate Equity Purchase Obligations
Balance, beginning of period	$	—	$	19.8	$	—	$	22.0
Net realized and unrealized (gains) losses(1)	—		(4.3)		16.6		(1.4)
Purchases and issuances(2)	—		310.6		23.7		112.7
Settlements and reductions	—		(304.1)		—		(120.7)
Balance, end of period	$	—	$	22.0	$	40.3	$	12.6

Net change in unrealized (gains) losses relating to instruments still held at the reporting date	$	—	$	—	$	—	$	—

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(1)Gains and losses resulting from changes to expected payments are included in Other expenses (net) and the accretion of these obligations is included in Interest expense.

(2)Affiliate equity purchase obligation activity includes transfers from Redeemable non-controlling interests.

The following table presents certain quantitative information about the significant unobservable inputs used in valuing the Company’s recurring level 3 fair value measurements:


	Quantitative Information About Level 3 Fair Value Measurements
			December 31, 2020					December 31, 2021
	Valuation Techniques	Unobservable Input	Fair Value		Range	Weighted Average(1)		Fair Value		Range	Weighted Average(1)
Contingent payment obligations	Monte Carlo simulation	Volatility	$	—	—	—		$	40.3	13% - 25%	13	%
		Discount rates			—	—				1% - 2%	2	%
Affiliate equity purchase obligations	Discounted cash flow	Growth rates(2)	$	22.0	(5)% - 8%	3	%	$	12.6	(13)% - 7%	2	%
		Discount rates			14% - 16%	15	%			15% - 18%	15	%

__________________________

(1)Calculated by comparing the relative fair value of an obligation to its respective total.

(2)Represents growth rates of asset- and performance-based fees.

Contingent payment obligations represent the present value of the expected future settlement amounts related to the Company’s investments in its consolidated Affiliates.

Affiliate equity purchase obligations include agreements to repurchase Affiliate equity. As of December 31, 2021, there were no changes to growth or discount rates that had a significant impact to Affiliate equity purchase obligations recorded in prior periods.

Other Financial Assets and Liabilities Not Carried at Fair Value

The Company has other financial assets and liabilities that are not required to be carried at fair value, but are required to be disclosed at fair value. The carrying amount of Cash and cash equivalents, Receivables, and Payables and accrued liabilities approximates fair value because of the short-term nature of these instruments. The carrying value of notes receivable, which is reported in Other assets, 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 credit facilities have 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, 2020				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value		Fair Value Hierarchy
Senior notes	$	1,097.3	$	1,206.6	$	1,098.0	$	1,165.6	Level 2
Junior subordinated notes	565.7		623.1		765.8		809.1		Level 2
Junior convertible securities	318.4		427.6		299.5		461.4		Level 2

- 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.

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