Derivative Instruments and Hedging Activity (Details) - USD ($)

12 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2018

Derivative [Line Items]

Derivative, Fair Value, Net

$ (37,000,000.0)

Interest Expense

74,000,000.0

$ 89,600,000

$ 95,000,000.0

Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments

5,200,000

Derivative, Notional Amount

$ 750,000,000.0

750,000,000.0

Derivative Instruments and Hedging Activities Disclosure

Note 6. Derivative Instruments and Hedging Activity

We are exposed to various market risks, including fluctuations in interest rates and variability in foreign currency exchange rates. We established policies, procedures and internal processes governing our management of market risks and the use of financial instruments to manage our exposure to such risks. We employ cash flow hedges, net investment hedges, and other undesignated derivative instruments to manage these risks.

Cash Flow Hedges

To manage our exposure to market risk from fluctuations in interest rates, we enter into interest rate swaps that are designated as cash flow hedges. As of September 30, 2020, we had interest rate swap agreements with an aggregate notional amount of $750.0 million to hedge the variability of cash flows through August 2024 associated with a portion of the variable interest rate payments on outstanding borrowings under our Senior Credit Agreement. As of September 30, 2019, we had interest rate swap agreements, with an aggregate notional amount of $750.0 million to hedge the variability of cash flows associated with a portion of the variable interest rate payments on outstanding borrowings under our Senior Credit Agreement through September 2021.

We are subject to variability in foreign currency exchange rates due to our international operations. We enter into currency exchange contracts that are designated as cash flow hedges to manage our exposure arising from fluctuating exchange rates related to specific and projected transactions. We operate this program pursuant to documented corporate risk management policies and do not enter into derivative transactions for speculative purposes. The sensitivity of earnings and cash flows to variability in exchange rates is assessed by applying an appropriate range of potential rate fluctuations to our assets, obligations, and projected results of operations denominated in foreign currencies. Our currency risk consists primarily of foreign currency denominated firm commitments and projected foreign currency denominated intercompany and third-party transactions. As of September 30, 2020, the notional amount of outstanding currency exchange contracts was $64.4 million. As of September 30, 2019, the notional amount of outstanding currency exchange contracts was $6.7 million. The maximum length of time over which we hedge transaction exposures is generally 15 months. Derivative gains and losses, initially reported as a component of Accumulated other comprehensive income (loss), are reclassified to earnings in the period when the transaction affects earnings.

Net Investment Hedges

As of September 30, 2020, we had outstanding cross-currency swap agreements, with an aggregate notional amount of $198.3 million to hedge the variability of U.S. dollar-Euro exchange rates through July 2023. These cross-currency swaps are designated as net investment hedges of subsidiaries using Euro as their functional currency.

We assess hedge effectiveness under the spot-to-spot method and record changes in fair value attributable to the translation of foreign currencies through Accumulated other comprehensive income (loss). We amortize the impact of all other changes in fair value of the derivative through Interest expense, which was income of $5.2 million for both the fiscal years ended September 30, 2020 and 2019.

Undesignated Derivative Instruments

We use forward contracts to mitigate the foreign exchange revaluation risk associated with recorded monetary assets and liabilities that are denominated in a non-functional currency. These derivative instruments are not formally designated as hedges and the terms of these instruments generally do not exceed one month. As of September 30, 2020, we had outstanding forward contracts not designated as hedges with aggregate notional amounts of $169.9 million. As of September 30, 2019, we had outstanding forward contracts not designated as hedges with aggregate notional amounts of $76.7 million. The following table summarizes unrealized and realized gains and losses for forward contracts not designated as hedges, which are recorded in Investment income (expense) and other, net.


	Year Ended September 30
	2020		2019
Unrealized gains (losses)	$	—	$	(0.2)
Realized gains (losses)	3.0		(2.9)

Fair Value

We classify fair value measurements on our derivative instruments as Level 2. The estimated fair values of our derivative instruments are described in the table below:


Derivative Instruments	September 30, 2020		Consolidated Balance Sheet Classification	September 30, 2019		Consolidated Balance Sheet Classification
Interest Rate Swaps	$	—	Other assets	$	0.9	Other assets
Interest Rate Swaps	(46.3)		Other current liabilities	(7.7)		Other current liabilities
Currency Exchange Contracts	(0.4)		Other current liabilities	0.2		Other current assets
Cross-Currency Swaps	9.7		Other assets	16.9		Other assets
Undesignated Forward Contracts	$	—	Other assets	(0.2)		Other current liabilities
Total	$	(37.0)		$	10.1