Fair Value

Fair value is the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. In arriving at a fair value measurement, the Company uses a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable. The three levels of inputs used to establish fair value are the following:


•	Level 1 — Quoted prices in active markets for identical assets or liabilities;


•	Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and


•	Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company elected not to use the fair value option for cash and cash equivalents, restricted cash and debt.

For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at June 30, 2019 and September 30, 2018.



			Fair Value at June 30, 2019
	Carrying Value		Level 1		Level 2		Level 3		Total
	(in millions)
Cash and cash equivalents ^(a)	$	223.0	$	223.0	$	—	$	—	$	223.0
Restricted cash ^(a)	0.2		0.2		—		—		0.2
Debt ^(b)	465.8		—		485.8		—		485.8



			Fair Value at September 30, 2018
	Carrying Value		Level 1		Level 2		Level 3		Total
	(in millions)
Cash and cash equivalents ^(a)	$	318.8	$	318.8	$	—	$	—	$	318.8
Restricted cash ^(a)	16.2		16.2		—		—		16.2
Debt ^(b)	112.4		—		113.2		—		113.2

_____________________


^(a)	The fair values of cash, cash equivalents and restricted cash approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy.


^(b)	The fair value of the convertible senior notes and the senior unsecured notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy.

Non-financial assets measured at fair value on a non-recurring basis principally include real estate assets which are measured for impairment.

Non-financial assets measured at fair value on a non-recurring basis are as follows:



	June 30, 2019								September 30, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(In millions)
Real estate	$	—	$	—	$	—	$	—	$	—	$	0.2	$	—	$	0.2

At September 30, 2018, the Company based the valuations of its real estate primarily on offers received from third parties.