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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2023
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value MeasurementsThe following tables summarize financial assets and liabilities that are measured at fair value on a recurring basis:
|  |  | Fair Value Measurements
| December 31, 2022 |
|  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Financial Assets |  |  |  |  |  |  |
Investments in equity securities(1) | $ | 447.9 |  |  | $ | 305.6 |  |  | $ | 142.3 |  |  | $ | — |
Investments in debt securities(1) | 269.0 |  |  | — |  |  | 269.0 |  |  | — |
Derivative financial instruments(2) | 0.5 |  |  | — |  |  | 0.5 |  |  | — |
Financial Liabilities(3) |  |  |  |  |  |  |
Contingent payment obligations | $ | 21.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 21.0 |
Affiliate equity purchase obligations | 24.5 |  |  | — |  |  | — |  |  | 24.5 |
Derivative financial instruments | 0.9 |  |  | — |  |  | 0.9 |  |  | — |
|  |  | Fair Value Measurements
| June 30, 2023 |
|  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Financial Assets |  |  |  |  |  |  |
Investments in equity securities(1) | $ | 95.8 |  |  | $ | 95.8 |  |  | $ | — |  |  | $ | — |
Investments in debt securities(1) | 348.4 |  |  | — |  |  | 348.4 |  |  | — |
Derivative financial instruments(2) | 1.9 |  |  | — |  |  | 1.9 |  |  | — |
Financial Liabilities(3) |  |  |  |  |  |  |
Contingent payment obligations | $ | 23.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 23.4 |
Affiliate equity purchase obligations | 68.4 |  |  | — |  |  | — |  |  | 68.4 |
Derivative financial instruments | 1.5 |  |  | — |  |  | 1.5 |  |  | — |
__________________________ (1)Amounts are presented within Investments in marketable securities on the Consolidated Balance Sheets. (2)Amounts are presented within Other assets on the Consolidated Balance Sheets. (3)Amounts are presented within Other liabilities on the Consolidated Balance Sheets. Level 3 Financial Liabilities The following table presents the changes in level 3 liabilities:
|  | For the Three Months Ended June 30,
|  | 2022 |  | 2023
|  | Contingent Payment Obligations |  | Affiliate Equity Purchase Obligations |  | Contingent Payment Obligations |  | Affiliate Equity Purchase Obligations
Balance, beginning of period |  | $ | 31.4 |  |  | $ | 47.6 |  |  | $ | 22.9 |  |  | $ | 60.9 |
Purchases and issuances(1) |  | — |  |  | 7.9 |  |  | — |  |  | 26.8 |
Settlements and reductions |  | — |  |  | (26.9) |  |  | — |  |  | (16.8) |
Net realized and unrealized (gains) losses(2) |  | (17.2) |  |  | (3.6) |  |  | 0.5 |  |  | (2.5) |
Balance, end of period |  | $ | 14.2 |  |  | $ | 25.0 |  |  | $ | 23.4 |  |  | $ | 68.4 |
Net change in unrealized (gains) losses relating to instruments still held at the reporting date(1) |  | $ | (17.2) |  |  | $ | (3.5) |  |  | $ | 0.5 |  |  | $ | (1.8) |
|  | For the Six Months Ended June 30,
|  | 2022 |  | 2023
|  | Contingent Payment Obligations |  | Affiliate Equity Purchase Obligations |  | Contingent Payment Obligations |  | Affiliate Equity Purchase Obligations
Balance, beginning of period |  | $ | 40.3 |  |  | $ | 12.6 |  |  | $ | 21.0 |  |  | $ | 24.5 |
Purchases and issuances(1) |  | — |  |  | 48.5 |  |  | — |  |  | 71.0 |
Settlements and reductions |  | — |  |  | (32.2) |  |  | — |  |  | (24.3) |
Net realized and unrealized (gains) losses(2) |  | (26.1) |  |  | (3.9) |  |  | 2.4 |  |  | (2.8) |
Balance, end of period |  | $ | 14.2 |  |  | $ | 25.0 |  |  | $ | 23.4 |  |  | $ | 68.4 |
Net change in unrealized (gains) losses relating to instruments still held at the reporting date(1) |  | $ | (26.1) |  |  | $ | (3.8) |  |  | $ | 2.4 |  |  | $ | (2.1) |
___________________________ (1)Affiliate equity purchase obligation activity includes transfers from Redeemable non-controlling interests. (2)Gains and losses resulting from changes to expected payments are included in Other expenses (net) on the Consolidated Statements of Income and the accretion of these obligations is included in Interest expense on the Consolidated Statements of Income. The following table presents certain quantitative information about the significant unobservable inputs used in valuing the Company’s level 3 fair value measurements:
| Quantitative Information About Level 3 Fair Value Measurements
|  |  |  |  | December 31, 2022 |  | June 30, 2023
| Valuation Techniques |  | Unobservable Input |  | Fair Value |  | Range |  | Weighted Average(1) |  | Fair Value |  | Range |  | Weighted Average(1)
Contingent payment obligations | Monte Carlo Simulation |  | Volatility |  | $ | 21.0 |  |  | 18% - 25% |  | 18 | % |  | $ | 23.4 |  |  | 20% - 25% |  | 20 | %
|  |  | Discount rates |  |  |  | 6% |  | 6 | % |  |  |  | 5% - 7% |  | 6 | %
Affiliate equity purchase obligations | Discounted cash flow |  | Growth rates(2) |  | $ | 24.5 |  |  | (3)% - 6% |  | 1 | % |  | $ | 68.4 |  |  | (9)% - 6% |  | (2) | %
|  |  | Discount rates |  |  |  | 14% - 17% |  | 14 | % |  |  |  | 12% - 17% |  | 14 | %
___________________________ (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 fair value of the expected future settlement amounts related to the Company’s investments in its consolidated Affiliates. Changes to assumed volatility and discount rates change the fair value of contingent payment obligations. Increases to the volatility rates used would result in higher fair values, while increases to the discount rates used would result in lower fair values. Affiliate equity purchase obligations include agreements to purchase Affiliate equity and represent the fair value of the expected future settlement amounts. Changes to assumed growth rates and discount rates change the fair value of the Affiliate equity purchase obligations. Increases to the assumed growth rates would result in higher fair values, while increases to the discount rates used would result in lower fair values. Other Financial Assets and Liabilities Not Carried at Fair Value The following table summarizes the Company’s other financial liabilities not carried at fair value:
| December 31, 2022 |  | June 30, 2023 |  |
| Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value |  | Fair Value Hierarchy
Senior notes | $ | 1,098.7 |  |  | $ | 1,024.6 |  |  | $ | 1,099.0 |  |  | $ | 1,019.9 |  |  | Level 2
Junior subordinated notes | 765.9 |  |  | 552.3 |  |  | 765.9 |  |  | 594.6 |  |  | Level 2
Junior convertible securities | 341.7 |  |  | 346.9 |  |  | 341.7 |  |  | 343.0 |  |  | Level 2
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, Payables and accrued liabilities, and certain Other 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 (as defined in Note 7) approximates fair value because the credit facilities have variable interest based on selected short-term rates.

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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/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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