Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.5.0.2
Fair Value Measurements
 9 Months Ended
Jun. 30, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
 
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date.  The authoritative guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.  Observable inputs are from sources independent of the Company.  Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability, developed based upon the best information available in the circumstances.  The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.  The hierarchy is broken down into three levels:
 
Level 1:
Inputs are quoted prices in active markets for identical assets or liabilities.
Level 2:
Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.
Level 3:
Inputs are unobservable for the asset or liability.
 
 
Carrying Value at
June 30, 2016
 
 
 
 
 
 
 
 
Fair Value at June 30, 2016
Using Inputs Considered as:
 
 
Level 1
 
Level 2
 
Level 3
Assets:
 

 
 

 
 

 
 

Cash and cash equivalents
$
47.6

 
$
47.6

 
$
—

 
$
—

Investments in rabbi trust
3.8

 
3.8

 
—

 
—

Derivative instruments
3.5

 
—

 
3.5

 
—

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

$150 senior unsecured notes
149.2

 
165.0

 
—

 
—

Revolving credit facility
223.5

 
—

 
223.5

 
—

Term loan
164.3

 
—

 
164.3

 
—

  $100 Series A Notes
100.0

 
—

 
108.2

 
—

Derivative instruments
6.3

 
—

 
6.3

 
—


 
The fair values of the Facility’s revolving credit facility and term loan approximated carrying value at June 30, 2016.  The fair values of the Facility’s revolving credit facility, term loan, and Series A Notes are estimated based on internally developed models, using current market interest rate data for similar issues as there is no active market for these obligations.

The fair values of the Company’s derivative instruments are based upon pricing models using inputs derived from third-party pricing services or observable market data such as currency spot and forward rates.  These values are periodically validated by comparing to third-party broker quotes.  The aggregate notional value of the derivative instruments was $215.1 at June 30, 2016. The derivatives are included in other current assets and other current liabilities on the balance sheet.