XML 25 R15.htm IDEA: XBRL DOCUMENT v3.22.2.2
Fair Value (Notes)
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
7. FAIR VALUE

ASC 820 - Fair Value Measurement defines fair value 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 definition is based on an exit price rather than an entry price, regardless of whether the entity plans to hold or sell the asset. This guidance also establishes a fair value hierarchy to prioritize inputs used in measuring fair value as follows:

•Level 1:  Observable inputs such as quoted prices in active markets;
•Level 2:  Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
•Level 3:  Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Financial instruments   The estimated carrying value of our financial assets and liabilities that are recognized at fair value on a recurring basis, using available market information and other observable data, are as follows:
 
 Fair Value 
September 30, 2022December 31, 2021Input
 (in millions) 
Balance Sheet Classification   
Cash equivalents$292.0 $196.5 Level 1
Prepaid expenses and other   
Cash flow hedges - currency forward contracts5.7 2.2 Level 2
Cash flow hedges - variable-to-fixed interest rate swap2.5 1.9 Level 2
Nondesignated - currency forward contracts0.2 0.2 Level 2
Other assets and deferred charges
     Cash flow hedges - currency forward contracts1.6 1.4 Level 2
     Cash flow hedges - fixed-to-fixed cross-currency swap15.3 — Level 2
     Cash flow hedges - variable-to-fixed interest rate swap9.4 2.2 Level 2
 Investment in equity securities3.4 27.4 Level 1
Accrued expenses and other
     Cash flow hedges - currency forward contracts— 0.3 Level 2
     Cash flow hedges - variable-to-fixed interest rate swap— 9.6 Level 2
Postretirement benefits and other long-term liabilities
     Cash flow hedges - currency forward contracts0.1 0.6 Level 2
Cash flow hedges - fixed-to-fixed cross-currency swap— 3.7 Level 2
     Cash flow hedges - variable-to-fixed interest rate swap— 12.7 Level 2

The carrying values of our cash, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the short-term maturities of these instruments. The carrying values of our borrowings under the foreign credit facilities approximate their fair value due to the frequent resetting of the interest rates.

We have an investment in the equity securities of REE Automotive, an e-mobility company. These equity securities are measured at fair value each reporting period with changes in fair value reported through an unrealized gain or loss within Other income (expense), net in our Condensed Consolidated Statement of Operations. As of September 30, 2022, our investment in REE shares was valued at $3.4 million based on a closing price on that date of $0.68 per share.
We estimated the fair value of the amounts outstanding on our debt using available market information and other observable data, to be as follows:
 
 September 30, 2022December 31, 2021 
 Carrying  AmountFair ValueCarrying  AmountFair Value
 
Input
 (in millions) 
     
Revolving Credit Facility$— $— $— $— Level 2
Term Loan A Facility520.0 507.7 301.8 301.8 Level 2
Term Loan B Facility750.0 731.3 850.0 847.9 Level 2
6.875% Notes due 2028400.0 342.0 400.0 430.0 Level 2
6.50% Notes due 2027500.0 422.5 500.0 519.4 Level 2
6.25% Notes due 2026180.0 165.2 400.0 408.5 Level 2
5.00% Notes due 2029600.0 450.0 600.0 588.0 Level 2