FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2014

8. FAIR VALUE MEASUREMENTS

The Company values its financial instruments based on the fair value hierarchy of valuation techniques for fair value measurements. Level 1 inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. If the technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.

The Company uses Level 1 inputs for the fair values of its cash equivalents and Level 2 inputs for its long-term debt. The fair values of cash and cash equivalents, receivables and short-term borrowings approximate their carrying values due to the short-term nature of the instruments. The fair value of the Company’s debt is calculated based upon interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements.

The carrying value and fair value of the Company’s financial instruments as of March 31, 2014 and December 31, 2013 are as follows (in millions):

	Carrying Value at March 31, 2014		Fair Value Measurements at March 31, 2014
					Quoted Prices in Active Markets		Significant Observable Inputs		Significant Unobservable
(in millions)	Total		Total		(Level 1)		(Level 2)		Inputs (Level 3)
Cash & cash equivalents	$	229.7	$	229.7	$	229.7	$	—	$	—
Accounts and notes receivable	177.9		177.9		—		177.9		—
Fixed rate debt	383.6		395.5		—		395.5		—

	Carrying Value at December 31, 2013		Fair Value Measurements at December 31, 2013
					Quoted Prices in Active Markets		Significant Observable Inputs		Significant Unobservable
(in millions)	Total		Total		(Level 1)		(Level 2)		Inputs (Level 3)
Cash & cash equivalents	$	114.5	$	114.5	$	114.5	$	—	$	—
Accounts and notes receivable	182.3		182.3		—		182.3		—
Fixed rate debt	286.1		292.7		—		292.7		—

- 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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