Fair Value Measurements

12 Months Ended

Sep. 28, 2019

The Company applies the provisions of ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value each reporting period and its nonfinancial assets and liabilities that are re-measured and reported at fair value on a non-recurring basis. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. Financial assets and liabilities are categorized within the valuation hierarchy based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy are defined as follows:


•	Level 1—Inputs to the valuation methodology are quoted market prices for identical assets or liabilities.


•	Level 2—Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities and market-corroborated inputs.


•	Level 3—Inputs to the valuation methodology are unobservable inputs based on management’s best estimate of inputs market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk.

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

The Company has investments in derivative instruments comprised of interest rate caps, an interest rate swap, forward foreign currency contracts and foreign currency option 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 these derivative contracts represent the estimated amounts the Company would receive or pay to terminate the contracts. Refer to Note 2 for further discussion and information on these derivative contracts. In addition, the Company has contingent

consideration liabilities related to two of its acquisitions that are recorded at fair value and were based on Level 3 inputs (see Note 4).

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



			Fair Value Measurements at September 28, 2019
	Carrying Value		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Interest rate caps - derivative	$	0.1	$	—	$	0.1	$	—
Interest rate swaps - derivative	4.7		—		4.7		—
Foreign currency option contracts	2.0		—		2.0		—
Forward foreign currency contracts	0.9		—		0.9		—
Total	$	7.7	$	—	$	7.7	$	—
Liabilities:
Contingent consideration	$	9.1	$	—	$	—	$	9.1
Forward foreign currency contracts	0.1		—		0.1		—
Total	$	9.2	$	—	$	0.1	$	9.1



			Fair Value Measurements at September 29, 2018
	Carrying Value		Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Interest rate caps - derivative	$	7.7	$	—	$	7.7	$	—
Forward foreign currency contracts	3.2		—		3.2		—
Total	$	10.9	$	—	$	10.9	$	—
Liabilities:
Contingent consideration	$	7.8	—		—		$	7.8
Forward foreign currency contracts	0.2		—		0.2		—
Total	$	8.0	$	—	$	0.2	$	7.8

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 are comprised of equity investments and long-lived assets, including property, plant and equipment, intangible assets and goodwill. There were no such remeasurements to equity investments in fiscal 2019, 2018 and 2017. Refer to Note 7 for disclosure of the nonrecurring fair value measurement related to the debt extinguishment losses recorded in fiscal 2019, 2018 and 2017.

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, an interest rate swap, forward foreign currency contracts, foreign currency option contracts, insurance contracts, accounts payable and debt obligations. The carrying amounts of the Company’s cash and 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 swap, forward foreign currency contracts and foreign currency option contracts are recorded at fair value. The carrying amount of the insurance contracts are recorded at the cash surrender value, as required by U.S. GAAP, which approximates fair value. The Company believes the carrying amounts of its cost-method equity investments approximate fair value, and the carrying value of its equity method investment differs from fair value due to the accounting requirement to adjust the carrying value for the Company's proportionate share of the investee's net loss.

Amounts outstanding under the Company’s 2018 Credit Agreement and Securitization Program of $1.50 billion and $234.0 million aggregate principal, respectively, as of September 28, 2019 are subject to variable rates of interest 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 approximately $975.5 million and $417.0 million, respectively, as of September 28, 2019 based on their trading price, representing a Level 1 measurement.