3.	Auction Rate Securities

Our ARS investments, which are included in non-current other assets, have failed to settle in auctions beginning in 2007. These investments are not liquid, and in the event we need to access these funds, we will not be able to do so without a loss of principal, unless redeemed by the issuers or a future auction on these investments is successful. During 2015, 2014 and 2013, $4.9 million, zero and $3.4 million, respectively, of our ARS investments were redeemed.

As there are currently no active markets for our various failed ARS investments, we have estimated the fair value of these investments as of the end of fiscal 2015 using a trinomial discounted cash flow analysis. The analysis considered, among others, the following factors:

·	the collateral underlying the security investments;

·	the creditworthiness of the counterparty;

·	the timing of expected future cash flows;

·	the probability of a successful auction in a future period;

·	the underlying structure of each investment;

·	the present value of future principal and interest payments discounted at rates considered to reflect current market conditions;

·	a consideration of the probabilities of default, passing a future auction, or redemption at par for each period; and

·	estimates of the recovery rates in the event of default for each investment.

When possible, our failed ARS investments were compared to other observable market data or securities with similar characteristics. Our estimate of the fair value of our ARS investments could fluctuate materially from period to period depending on future market conditions.

We have ARS investments with a fair value of $13.1 million that mature from fiscal 2016 to 2018 and $2.7 million that have no maturity. Of our ARS investments, $0.6 million par value are investment grade and the remaining $18.5 million par value are below investment grade.

The various types of ARS investments we held as of the end of fiscal 2015, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value consisted of the following (in millions):

	Original Cost Basis		Other-than- temporary Impairment in Retained Earnings				New Cost Basis		Unrealized Gain		Fair Value
Credit linked notes	$	13.5	$	(6.1	)	⁽¹⁾	$	7.4	$	5.0	$	12.4
Preferred stock		5.0		(5.0	)			—		2.8		2.8
Municipals		0.6		(0.1	)			0.5		0.1		0.6
Total ARS Investments	$	19.1	$	(11.2	)		$	7.9	$	7.9	$	15.8

(1)	Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $2.7 million on non-current other assets. Accretion is reclassified from accumulated other comprehensive income and recorded in the consolidated statements of income as interest income.

The various types of ARS investments we held as of the end of fiscal 2014, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value consisted of the following (in millions):

	Original Cost Basis		Other-than- temporary Impairment in Retained Earnings				New Cost Basis		Unrealized Gain/(Loss)			Fair Value
Student loans	$	3.5	$	(0.2	)		$	3.3	$	(0.1	)	$	3.2
Credit linked notes		13.5		(7.5	)	⁽¹⁾		6.0		5.9			11.9
Preferred stock		5.0		(5.0	)			—		2.8			2.8
Municipals		2.0		(0.1	)			1.9		—			1.9
Total ARS Investments	$	24.0	$	(12.8	)		$	11.2	$	8.6		$	19.8

(1)	Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $1.3 million on non-current other assets. Accretion is reclassified from accumulated other comprehensive income and recorded in the consolidated statements of income as interest income.

All of the ARS investments in the above table with unrealized losses have been in a continuous unrealized loss position for more than 12 months.

We have accounted for most of our ARS investments as non-current as we are not able to reasonably determine when the ARS markets will recover or be restructured. We have accounted for $0.6 million of our ARS investments as current as the maturity date is July 1, 2015. Based on our ability to access our cash and cash equivalents, our expected operating cash flows, and our other sources of cash, we do not intend to sell our ARS investments and it is not more likely than not that we will be required to sell our ARS investments before the recovery of the amortized cost basis. We will continue to monitor our ARS investments and evaluate our accounting for these investments quarterly.