Hewitt Associates (HEW)

Fair Value of Financial Instruments

Cash and cash equivalents and client receivables are financial assets with carrying values that approximate fair value. Accounts payable and the Company’s variable rate debt are financial liabilities with carrying values that approximate fair value. As of September 30, 2008 and 2007, the carrying value of the Company’s fixed rate unsecured senior term notes was $283,000 and $70,000, respectively, and the fair value was estimated to be approximately $287,649 and $74,955, respectively. The estimate of fair value was calculated by discounting the future cash flows of the senior term notes at rates currently offered to the Company for similar debt instruments with comparable maturities. At September 30, 2008 and 2007, the carrying value of the Company’s unsecured convertible senior notes with a face value of $110,000 was $110,000 and $106,080, respectively, and the fair value was estimated to be $109,104 and $106,563, respectively based on the current market value of this publicly traded security. Refer to Note 5 for discussion on fair value of auction rate securities.

Fair Value of Financial
Instruments

Cash and cash equivalents and client receivables are financial assets with carrying values that approximate fair value. Accounts payable
and the Company’s variable rate debt are financial liabilities with carrying values that approximate fair value. As of September 30, 2008 and 2007, the carrying value of the Company’s fixed rate unsecured senior term notes was
$283,000 and $70,000, respectively, and the fair value was estimated to be approximately $287,649 and $74,955, respectively. The estimate of fair value was calculated by discounting the future cash flows of the senior term notes at rates currently
offered to the Company for similar debt instruments with comparable maturities. At September 30, 2008 and 2007, the carrying value of the Company’s unsecured convertible senior notes with a face value of $110,000 was $110,000 and $106,080,
respectively, and the fair value was estimated to be $109,104 and $106,563, respectively based on the current market value of this publicly traded security. Refer to Note 5 for discussion on fair value of auction rate securities.

Fair Value of Financial Instruments

Cash and cash equivalents, marketable securities and client receivables are financial assets with carrying values that approximate fair value. Accounts payable and the Company’s variable rate debt are financial liabilities with carrying values that approximate fair value. As of September 30, 2007 and 2006, the carrying value of the Company’s fixed rate unsecured senior term notes was $70,000 and $98,000, respectively, and the fair value was estimated to be approximately $74,955 and $105,194, respectively. The estimate of fair value was calculated by discounting the future cash flows of the senior term notes at rates currently offered to the Company for similar debt instruments with comparable maturities. At September 30, 2007 and 2006, the carrying value of the Company’s unsecured convertible senior notes with a face value of $110,000 was $106,080 and $104,805, respectively, and the fair value was estimated to be $106,563 and $102,850, respectively based on the current market value of this publicly traded security.

Fair Value of Financial Instruments

Cash and cash equivalents, marketable securities and client receivables are financial assets with carrying values that approximate fair value. Accounts payable and the Company’s variable rate debt are financial liabilities with carrying values that approximate fair value. As of September 30, 2006 and 2005, the carrying value of the Company’s fixed

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rate unsecured senior term notes was $98,000 and $121,000, respectively, and the fair value was estimated to be approximately $105,194 and $130,992, respectively. The estimate of fair value was calculated by discounting the future cash flows of the senior term notes at rates currently offered to the Company for similar debt instruments with comparable maturities. At September 30, 2006 and 2005, the carrying value of the Company’s unsecured convertible senior notes with a face value of $110,000 was $104,805 and $103,545, respectively, and the fair value was estimated to be $102,850 and $100,513, respectively based on the current market value of this publicly traded security.

Fair Value of Financial Instruments

Cash and cash equivalents, marketable securities and client receivables are financial assets with carrying values that approximate fair value. Accounts payable and the Company’s variable rate debt are financial liabilities with carrying values that approximate fair value. As of September 30, 2005 and 2004, the carrying value of the Company’s fixed rate senior term notes was $121,000 and $134,000, respectively, and the fair value was estimated to be approximately $130,992 and $147,000, respectively. The estimate of fair value was calculated by discounting the future cash flows of the senior term notes at rates currently offered to the Company for similar debt instruments with comparable maturities. The fair value of the Company’s $103,545 of 2.50% Convertible Senior Notes with a face value of $110,000 is valued at $100,513 at September 30, 2005, based on the current market value of this publicly traded security.

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