XML 57 R27.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Commitments and Contingencies and Derivative Financial Instruments | 12 Months Ended
--- | ---
Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies and Derivative Financial Instruments | Commitments and Contingencies and Derivative Financial Instruments Derivative Financial Instruments The Company is exposed to interest rate risk under its variable rate borrowings and additionally, due to the nature of the Compan y's international operations, we are at times exposed to foreign currency risk. As such, we sometimes enter into foreign exchange contracts and interest rate contracts in order to limit our exposure to fluctuating foreign currencies and interest rates. During fiscal 2022 we entered into two treasury lock agreements with a total notional value of $500.0 million as of September 30, 2022 to manage our interest rate exposure to the anticipated issuance of fixed rate debt before December 2023. The two instruments locked in a fixed interest rate of 2.769% for the first $250 million of fixed rate debt to be issued and 2.672% for the remaining amount to be issued. The fair value of the treasury locks at September 30, 2022 was $40.9 million all of which is included in current assets within receivables and contract assets on the consolidated balance sheet. The unrealized net gain (loss) on these locks was $30.8 million, net of tax, and is included in accumulated other comprehensive income as of September 30, 2022. Upon issuance of the fixed rate debt, the gain (loss) will be amortized to interest expense over the term of the debt. In fiscal 2020 we entered into interest rate swap agreements with a notional va lue of $748.4 million as of September 30, 2022 to manage the interest rate exposure on our variable rate loans. Additionally, we entered into a cross-currency swap agreement with a notional value of $127.8 million to manage the interest rate and foreign currency exposure on our USD borrowings by a European subsidiary. By entering into the swap agreements, the Company converted the LIBOR and SONIA rate based liabilities into fixed rate liabilities and, for the cross currency swap, our LIBOR rate based borrowing in USD to a fixed rate Euro liability, for periods ranging from three and a half to ten years. For U.S. dollar denominated interest rate swap agreements, the Company receives the one month LIBOR rate and pays monthly a fixed rate ranging from 0.704% to 1.116%. For interest rate swap agreements denominated in British pounds, the Company receives a one month adjusted SONIA rate and pays a monthly fixed rate of 0.820%. Under the cross currency swap agreement, the Company receives the one month LIBOR rate plus 0.875% in USD and pays monthly a Euro fixed rate of 0.726% to 0.746% for the term of the swaps. The swaps were designated as cash-flow hedges in accordance with ASC 815, Derivatives and Hedging. See Note 2 - Significant Accounting Policies for additional discussion related to the application of SONIA to existing hedge contracts. The fair value of the interest rate and cross currency swaps at September 30, 2022 was $128.2 million, which is included in miscellaneous other assets on the consolidated balance sheet. The fair value of the interest rate and cross currency swaps at October 1, 2021 was $(0.8) million, of which, $(11.0) million is included in other deferred liabilities and $10.2 million is included in miscellaneous other assets on the consolidated balance sheet. The unrealized net gain on these interest rate and cross currency swaps was $87.5 million and $7.4 million, net of tax, and was included in accumulated other comprehensive income as of September 30, 2022 and October 1, 2021, respectively. Additionally, at September 30, 2022 and October 1, 2021, the Company held foreign exchange forward contracts in currencies that support our operations, including British Pound, Euro, Australian Dollar and other currencies, with notional values of $298.2 million and $506.5 million at September 30, 2022 and October 1, 2021, respectively. The length of these contracts currently ranges from one to sixteen months. The fair value of the foreign exchange contracts at September 30, 2022 and October 1, 2021 was $(3.2) million and $55.5 million, respectively, of which $(6.3) million is included within accounts payable, $2.8 million is included within miscellaneous other assets and $0.3 million included within current assets on the consolidated balance sheet as of September 30, 2022 with the entire $55.5 million as of October 1, 2021 held in current assets within receivables and contract assets on the consolidated balance sheet. With associated income statement impacts included in miscellaneous income (expense) in the consolidated statements of earnings for both comparative periods. During fiscal 2022, the Company settled $66.7 million in cash related to certain Australian Dollar foreign exchange forward contracts and subsequently entered into a new Australian Dollar instrument with an equal notional value which was ultimately settled later in fiscal 2022. The fair value measurements of these derivatives are being made using Level 2 inputs under ASC 820, Fair Value Measurement, as the measurements are based on observable inputs other than quoted prices in active markets. We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange and interest rate contracts and expect all counterparties to meet their obligations. We have not experienced credit losses from our counterparties. Letters of Credit At September 30, 2022, the Company had issued and outstanding approximately $280.5 million in LOCs and $2.2 billion in surety bonds. Of the outstanding LOC amount, $1.3 million has been issued under the Revolving Credit Facility and $279.2 million are issued under separate, committed and uncommitted letter-of-credit facilities.

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI https://asc.fasb.org/topic&trid=2144648 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 440 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6491277&loc=d3e6429-115629 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI https://asc.fasb.org/topic&trid=2127136 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123406679&loc=d3e25336-109308 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123406679&loc=d3e25336-109308 + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration