Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2017

Financial Instruments, Owned, at Fair Value [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

In accordance with the Company's policy, 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 policy classifies the inputs used to measure fair value into the following hierarchy:

Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or

Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or

Inputs other than quoted prices that are observable for the asset or liability

Level 3 Unobservable inputs for the asset or liability

The Company endeavors to utilize the best available information in measuring fair value. The Company estimates the fair value of its Senior Notes and Term Loan B Facility based on quoted market prices of the instruments. Because these markets are typically thinly traded, the assets and liabilities are classified as Level 2 of the fair value hierarchy. The carrying values of cash and cash equivalents, accounts receivable, accounts payable and deferred purchase price notes on receivables sold (see Note 11, "Accounts Receivable Securitization"), approximate fair value, without being discounted as of December 31, 2017 and 2016 due to the short-term nature of these instruments.

The fair value of the Company's 9.50% Senior Notes due 2024 (the "Senior Notes") was approximately $483.8 million and $496.2 million as of December 31, 2017 and 2016, respectively. The fair value of the Company's Term Loan B under its Senior Secured Credit Facilities was approximately $818.1 million and $838.4 million as of December 31, 2017 and 2016, respectively. See Note 12, "Debt," for a description of the debt instruments and their related carrying values. Aside from the asset impairment charges discussed in Note 19, "Restructuring," no other non-recurring fair value adjustments were recorded during the years ended December 31, 2017, 2016 and 2015.

The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2017 and 2016 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Fair Value as of December 31, 2017
(in millions)	Level 1		Level 2		Level 3		Total
Current assets:
Foreign currency exchange contracts	$	—	$	1.1	$	—	$	1.1
Commodity contracts	—		1.7		—		1.7
Interest rate swap contracts	—		1.7		—		1.7
Total current assets at fair value	—		4.5		—		4.5
Non-current assets:
Commodity contracts	—		0.6		—		0.6
Interest rate swap contracts	—		2.3		—		2.3
Total non-current assets at fair value	—		2.9		—		2.9
Total assets at fair value	$	—	$	7.4	$	—	$	7.4
Current liabilities:
Foreign currency exchange contracts	$	—	$	1.1	$	—	$	1.1
Commodity contracts	—		0.1		—		0.1
Total current liabilities at fair value	—		1.2		—		1.2
Non-current liabilities:
Interest rate swap contracts	—		17.7		—		17.7
Total non-current liabilities at fair value	—		17.7		—		17.7
Total liabilities at fair value	$	—	$	18.9	$	—	$	18.9

	Fair Value as of December 31, 2016
(in millions)	Level 1		Level 2		Level 3		Total
Current assets:
Foreign currency exchange contracts	$	—	$	0.6	$	—	$	0.6
Commodity contracts	—		0.9		—		0.9
Total current assets at fair value	—		1.5		—		1.5
Non-current assets:
Commodity contracts	—		0.2		—		0.2
Total non-current assets at fair value	—		0.2		—		0.2
Total assets at fair value	$	—	$	1.7	$	—	$	1.7
Current liabilities:
Foreign currency exchange contracts	$	—	$	1.0	$	—	$	1.0
Commodity contracts	—		0.1		—		0.1
Total current liabilities at fair value	—		1.1		—		1.1
Total liabilities at fair value	$	—	$	1.1	$	—	$	1.1

The foreign currency exchange, commodity and interest rate swap contracts are valued through an independent valuation source which uses an industry standard data provider, with resulting valuations periodically validated through third-party or counterparty quotes. As such, these derivative instruments are classified within Level 2 of the fair value hierarchy.