EFTA01382441.pdf

Amendment No. 3 to Form S-1 Table of Contents AB ACQUISITION LLC AND SUBSIDIARIES Notes to Consolidated Financial Statements Note 6—Fair Value Measurements The accounting guidance for fair value established a framework for measuring fair value and established a three-level valuation hierarchy for disclosure of fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability at the measurement date. The three levels are defined as follows: Level 1— Quoted prices in active markets for identical assets or liabilities: Level 2— Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable: Level 3— Unobservable inputs in which little or no market activity exists, requiring an entity to develop its own assumptions that market participants would use to value the asset or liability. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following table presents assets and liabilities which are measured at fair value on a recurring basis at February 28, 2015 (in millions): Fair Value Measurements Quoted prices in active markets Significant Significant for Identical observable unobservable assets inputs inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Money market $565.0 $ 565.0 $ - $ Short-term investments (1) 24.1 17.1 7.0 — Non-current investments (2) 55.3 8.4 46.9 — Total $644.4 $ 590.5 $ 53.9 $ Liabilities: Derivative contracts (3) $121.7 $ — $ 121.7 $ — Contingent consideration (4) 270.9 — — 270.9 Total $392.6 $ 121.7 $ 270.9 (1) Classified as available-for-sale securities and included in Other current assets on the Consolidated Balance Sheet. (2) Classified as available-for-sale securities and included in Other assets on the Consolidated Balance Sheet. (3) Included in Other current liabilities on the Consolidated Balance Sheet. (4) Included in Other long-term liabilities on the Consolidated Balance Sheet. In fiscal 2013, the Company classified available-for-sale securities within Level 1 of the fair value hierarchy, as the estimated fair value was determined using quoted market prices from the underlying over-the-counter publicly traded securities. As of February 20, 2014, the fair value of the Company's available-for-sale securities was $5.3 million. F-50 (Continued) icc.go% ANN% edgar data' 1646972 000119312515335826'd900395dsla.html10 14'2015 9:03:02 AM1 hill). V.1% CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0081799 CONFIDENTIAL SDNY_GM_00227983 EFTA01382441