Fair Value

12 Months Ended

Sep. 30, 2011

Fair Value [Abstract]

Fair Value

3. FAIR VALUE

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. There is a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

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

Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

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.

Level 1 instrument valuations are obtained from quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations include valuations obtained from quoted prices for identical assets in markets that are not active. In addition, the Company has elected to use the income approach to value its derivative instruments using standard valuation techniques and Level 2 inputs, such as currency spot rates, forward points and credit default swap spreads. The Company's derivative instruments are short-term in nature, typically one month to twelve months in duration. Level 3 contingent consideration liability valuations are based on the income approach, with key assumptions, including estimated probabilities of achievement of milestones related to market acceptance of the products of an acquired business, as well as estimated discount rates corresponding to the periods of expected payments. Level 3 short-term investment is valued based on the income approach, with key assumptions, including estimated probabilities of default by the counterparty and the London Interbank Offered Rate ("LIBOR"). The fair value of an option to purchase a company, a Level 3 asset, is based on the income approach, with key assumptions, including projected operating results of the company, as well as estimated discount rates corresponding to the periods of expected payments.

There were no significant transfers of assets or liabilities between fair value measurement levels during fiscal years 2011, 2010 and 2009. Transfers between fair value measurement levels are recognized at the end of the reporting period.

In the tables below, the Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.

Assets/Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the Company's assets and liabilities that were measured at fair value on a recurring basis.

	Fair Value Measurement Using
Type of Instruments	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Balance
(In millions)
Assets at September 30, 2011:
Money market funds	$	1.3	$	—		$	—		$	1.3
Option to purchase a company		—		—			1.4			1.4
Corporate debt security		—		—			19.2			19.2
Total assets measured at fair value	$	1.3	$	—		$	20.6		$	21.9
Liabilities at September 30, 2011:
Derivative liabilities	$	—	$	—		$	—		$	—
Contingent consideration		—		—			(0.1	)		(0.1	)
Total liabilities measured at fair value	$	—	$	—		$	(0.1	)	$	(0.1	)
Assets at October 1, 2010:
Money market funds	$	36.4	$	—		$	—		$	36.4
Total assets measured at fair value	$	36.4	$	—		$	—		$	36.4
Liabilities at October 1, 2010:
Derivative liabilities	$	—	$	(0.5	)	$	—		$	(0.5	)
Total liabilities measured at fair value	$	—	$	(0.5	)	$	—		$	(0.5	)

	Fair Value Measurement Using
Line Item in Consolidated Balance Sheet	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Balance
(In millions)
Assets at September 30, 2011:
Cash and cash equivalents	$	0.2	$	—		$	—		$	0.2
Short-term investment		—		—			19.2			19.2
Other assets		1.1		—			1.4			2.5
Total assets measured at fair value	$	1.3	$	—		$	20.6		$	21.9
Liabilities at September 30, 2011:
Accrued liabilities	$	—	$	—		$	—		$	—
Other long-term liabilities		—		—			(0.1	)		(0.1	)
Total liabilities measured at fair value	$	—	$	—		$	(0.1	)	$	(0.1	)
Assets at October 1, 2010:
Cash and cash equivalents	$	35.3	$	—		$	—		$	35.3
Other assets		1.1		—			—			1.1
Total assets measured at fair value	$	36.4	$	—		$	—		$	36.4
Liabilities at October 1, 2010:
Accrued liabilities	$	—	$	(0.5	)	$	—		$	(0.5	)
Total liabilities measured at fair value	$	—	$	(0.5	)	$	—		$	(0.5	)

The following table presents the reconciliation for all assets and liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3):

(In millions)	Corporate Debt Security		Option to Purchase  a Company		Contingent Consideration
Balance at October 1, 2010	$	—	$	—	$	—
Total gains and losses (realized and unrealized):
Included in selling, general and administrative expenses		—		—		0.4
Purchases, sales, issuances, and settlements, net		19.2		1.4		(0.5	)
Balance at September 30, 2011	$	19.2	$	1.4	$	(0.1	)