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 our fiscal years 2017, 2016 and 2015, $7.5 million, $6.6 million and $4.9 million, respectively, of our ARS investments were redeemed.

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 fluctuates from period to period depending on future market conditions.

We have ARS investments with a fair value of $1.5 million with no maturity date, which are below investment grade and have a total par value of $5.0 million.

The type of ARS investments we held as of the end of fiscal 2017, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain, 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

Preferred stock

5.0

(5.0

)

—

1.5

The various types of ARS investments we held as of the end of fiscal 2016, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain, 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	$	7.5	$	(2.2	)	⁽¹⁾	$	5.3	$	1.8	$	7.1
Preferred stock		5.0		(5.0	)			—		1.5		1.5
Total ARS Investments	$	12.5	$	(7.2	)		$	5.3	$	3.3	$	8.6

(1)	Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $4.4 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.

We have accounted for our ARS investments as non-current as we are not able to reasonably determine when the ARS markets will recover or be restructured. 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.