FAIR VALUE MEASUREMENTS

3 Months Ended

Dec. 28, 2019

The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and 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 inputs for the asset or liability. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following summarizes the carrying amounts and fair values of financial instruments (in millions):



		December 28, 2019				September 30, 2019
	Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	1	$	4,194	$	4,194	$	1,467	$	1,467
Interest rate cap agreements ⁽¹⁾	2	1		1		1		1
Foreign currency forward exchange contracts and other ⁽²⁾	2	1		1		—		—
Liabilities:
Interest rate swap agreements ⁽³⁾	2	14		14		13		13
Interest rate swap agreements ⁽⁴⁾	2	169		169		202		202
Foreign currency forward exchange contracts and other ⁽³⁾	2	4		4		6		6
Short-term borrowings - trade receivable securitization facility ⁽⁵⁾	1	350		350		350		350
Long-term debt, including current portion:
Term loans ⁽⁵⁾	2	7,452		7,509		7,449		7,478
6.00% 2022 Notes ⁽⁵⁾	1	—		—		1,146		1,167
6.50% 2024 Notes ⁽⁵⁾	1	1,195		1,236		1,194		1,239
6.50% 2025 Notes ⁽⁵⁾	1	750		781		750		782
6.375% 2026 Notes ⁽⁵⁾	1	943		1,007		943		999
6.875% 2026 Notes ⁽⁵⁾	1	492		536		491		535
6.25% 2026 Notes ⁽⁵⁾	1	3,945		4,325		3,942		4,290
7.50% 2027 Notes ⁽⁵⁾	1	545		601		545		595
5.50% 2027 Notes ⁽⁵⁾	1	2,627		2,686		—		—
Government Refundable Advances	2	31		31		39		39
Finance Lease Obligations	2	52		52		50		50


⁽¹⁾	Included in other non-current assets on the condensed consolidated balance sheets.


⁽²⁾	Included in prepaid expenses and other on the condensed consolidated balance sheets.


⁽³⁾	Included in accrued liabilities on the condensed consolidated balance sheets.


⁽⁴⁾	Included in other non-current liabilities on the condensed consolidated balance sheets.


⁽⁵⁾	The carrying amount of the debt instrument is presented net of debt issuance costs, premium and discount. Refer to Note 9, "Debt," for gross carrying amounts.

The Company values its financial instruments using an industry standard market approach, in which prices and other relevant information are generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were recognized using unobservable inputs.

Interest rate swaps were measured at fair value using quoted market prices for the swap interest rate indexes over the term of the swap discounted to present value versus the fixed rate of the contract. The interest rate caps were measured at fair value using implied volatility rates of each individual caplet and the yield curve for the related periods.

The Company’s derivative contracts consist of foreign currency exchange contracts and, from time to time, interest rate swap and cap agreements. These derivative contracts are over-the-counter, and their fair value is determined using modeling techniques that include market inputs such as interest rates, yield curves, and currency exchange rates. These contracts are categorized as Level 2 in the fair value hierarchy.

The estimated fair value of the Company’s term loans was based on information provided by the agent under the Company’s senior secured credit facility. The estimated fair values of the Company’s notes were based upon quoted market prices. There has not been any impact to the fair value of derivative liabilities due to the Company's own credit risk. Similarly, there has not been any impact to the fair value of derivative assets based on the Company's evaluation of counterparties' credit risks.

The fair value of cash and cash equivalents, restricted cash, trade accounts receivable-net and accounts payable approximated book value due to the short-term nature of these instruments at December 28, 2019 and September 30, 2019.