FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2019

Components of Fair Value Measurements of Financial Assets and Liabilities

The areas in which we utilize fair value measures of financial assets and liabilities are presented in the table below.



	As of September 30, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Bank time deposits with original maturities of three months or less	$	—	$	127.0	$	—	$	127.0
Derivative assets ¹ (Note 15)	—		1.5		—		1.5
Diversified investments associated with the Executive Stock Unit Program (ESUP) ¹	38.2		—		—		38.2
Total assets	$	38.2	$	128.5	$	—	$	166.7
Liabilities:
Derivative liabilities ¹ (Note 15)	$	—	$	3.8	$	—	$	3.8
Liabilities associated with the ESUP ¹	37.8		—		—		37.8
Total liabilities	$	37.8	$	3.8	$	—	$	41.6



	As of December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Bank time deposits with original maturities of three months or less	$	—	$	159.1	$	—	$	159.1
Derivative assets ¹ (Note 15)	—		1.2		—		1.2
Diversified investments associated with the ESUP ¹	32.7		—		—		32.7
Total assets	$	32.7	$	160.3	$	—	$	193.0
Liabilities:
Derivative liabilities ¹ (Note 15)	$	—	$	4.7	$	—	$	4.7
Liabilities associated with the ESUP ¹	33.7		—		—		33.7
Total liabilities	$	33.7	$	4.7	$	—	$	38.4

¹Includes both current and long-term amounts.

Schedule Of Goodwill Impairment Test Assumptions

The fair values of our reporting units in relation to their respective carrying values and significant assumptions used are presented in the tables below. If actual results differ materially from estimates used in these calculations, we could incur future impairment charges.



2019
Fair Value over Carrying Value divided by Carrying Value	September 30, 2019 Goodwill Value		10-year Compound Annual Growth Rate Range for Sales	Terminal Values Long-term Growth Rate for Debt-Free Cash Flow		Discount Rate Ranges
Less than 50% ¹	$	58.7	1.4% - 5.8%	3	%	8.0% - 9.5%
50% - 100% ²	721.0		5.0%	3	%	8.5%
101% - 300%	391.4		1.3% - 5.5%	3	%	7.5% - 8.0%
301% - 600%	220.9		.2% - 11.1%	3	%	8.5%
	$	1,392.0	.2% - 11.1%	3	%	7.5% - 9.5%



2018
Fair Value over Carrying Value divided by Carrying Value	September 30, 2018 Goodwill Value		10-year Compound Annual Growth Rate Range for Sales	Terminal Values Long-term Growth Rate for Debt-Free Cash Flow		Discount Rate Ranges
Less than 100% ³	$	180.9	4.7% - 5.2%	3	%	9.0% - 9.5%
101% - 300%	505.7		1.8% - 5.0%	3	%	8.5% - 10.0%
301% - 600%	153.7		5.7% - 12.4%	3	%	9.0% - 10.0%
	$	840.3	1.8% - 12.4%	3	%	8.5% - 10.0%

¹This category includes two reporting units:

•The fair value of our Machinery reporting unit exceeded its carrying value by 12%. This unit has $33.2 of goodwill at September 30, 2019.

•The fair value of our Hydraulic Cylinders reporting unit exceeded its carry value by 29%. This reporting unit was acquired in the first quarter of 2018 and has goodwill of $25.5 associated with it.

²This category includes one reporting unit. The fair value of our Bedding reporting unit exceeded its carrying value by 50% at September 30, 2019 as compared to 198% at September 30, 2018. This decrease was due to the January 2019 ECS acquisition (as discussed in Note 10). At our testing date, the carrying value approximated fair value for the ECS business.

³The fair value of all reporting units in this category exceeded their carrying values by 90%, except for the Hydraulic Cylinders reporting unit (acquired in the first quarter of 2018), to which carrying value approximated fair value.