Fair Value Measurements

3 Months Ended

Dec. 28, 2019

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

Fair Value Measurements

Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The Company has investments in derivative instruments consisting of interest rate caps, interest rate swaps and foreign currency contracts, which are valued using analyses obtained from independent third party valuation specialists based on market observable inputs, representing Level 2 assets. The fair values of the Company's interest rate caps, interest rate swaps, forward foreign currency contracts and foreign currency option contracts represent the estimated amounts the Company would receive or pay to terminate the contracts. Refer to Note 8 for further discussion and information on the interest rate caps and foreign currency contracts.

Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following at December 28, 2019:



			Fair Value at Reporting Date Using
	Balance as of December 28, 2019		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Interest rate swaps - derivative	$	10.4	$	—	$	10.4	$	—
Foreign currency option contracts	0.3		—		0.3		—
Forward foreign currency contracts	0.5		—		0.5		—
Total	$	11.2	$	—	$	11.2	$	—
Liabilities:
Contingent consideration	$	9.3	$	—	$	—	$	9.3
Forward foreign currency contracts	1.2		—		1.2		—
Total	$	10.5	$	—	$	1.2	$	9.3

Assets Measured and Recorded at Fair Value on a Recurring Basis

The Company has contingent consideration liabilities related to its Emsor S.A. and Faxitron Bioptics, LLC acquisitions. The remeasurement of these liabilities in the first quarter of fiscal 2020 was insignificant. The Company paid these contingent consideration liabilities in January 2020.

Assets Measured and Recorded at Fair Value on a Nonrecurring Basis

The Company remeasures the fair value of certain assets and liabilities upon the occurrence of certain events. Such assets consist of equity investments and long-lived assets, including property, plant and equipment, intangible assets and goodwill. There were no such remeasurements for equity investments in the three months ended December 28, 2019 and December 29, 2018. During the first quarter of fiscal 2020, the Company's Medical Aesthetics division met the criteria to be classified as assets-held-for sale and the Company recorded a $30.2 million loss to record the asset group at its fair value less costs to sell. This is a level 1 measurement. See Note 6 for additional information.

Disclosure of Fair Value of Financial Instruments

The Company’s financial instruments mainly consist of cash and cash equivalents, accounts receivable, equity investments, interest rate caps, interest rate swaps, forward foreign currency contracts, foreign currency option contracts, insurance contracts, accounts payable and debt obligations. The carrying amounts of the Company’s cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these instruments. The Company’s interest rate caps, interest rate swaps, forward foreign currency contracts and foreign currency option contracts are recorded at fair value. The carrying amount of the insurance contracts is recorded at the cash surrender value, as required by GAAP, which approximates fair value. The Company believes the carrying amounts of its equity investments approximate fair value.

Amounts outstanding under the Company’s 2018 Credit Agreement (as defined below) and Securitization Program of $1.5 billion and $250.0 million aggregate principal, respectively, as of December 28, 2019 are subject to variable interest rates, which are based on current market rates, and as such, the Company believes the carrying amount of these obligations approximates fair value. The Company’s 2025 Senior Notes and 2028 Senior Notes had fair values of $983.4 million and $424.0 million, respectively, as of December 28, 2019 based on their trading prices, representing Level 1 measurements. Refer to Note 7 for the carrying amounts of the various components of the Company’s debt.