Fair Value Measurements

12 Months Ended

Dec. 31, 2015

10. Fair Value Measurements

The carrying value and fair value of debt as of December 31, 2015 and 2014 were as follows:



(In millions)	December 31, 2015				December 31, 2014

	Carrying Value		Fair Value		Carrying Value		Fair Value
Revolving credit facility	$	—	$	—	$	145.0	$	145.0
Notes payable to bank		0.8		0.8		—		—
Term loan, including current portion		280.0		280.0		525.0		525.0
Senior Notes, net of underwriting commissions and price discounts		891.6		894.1		—		—

ASC requirements for Fair Value Measurements and Disclosures establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. Level 1 inputs, the highest priority, are quoted prices in active markets for identical assets or liabilities. Level 2 inputs reflect other than quoted prices included in level 1 that are either observable directly or through corroboration with observable market data. Level 3 inputs are unobservable inputs due to little or no market activity for the asset or liability, such as internally-developed valuation models. We do not have any assets or liabilities measured at fair value on a recurring basis that are level 3.

The estimated fair value of our term loan and the current portion thereof is determined primarily using broker quotes, which are level 2 inputs. The estimated fair value of our Senior Notes is determined by using quoted market prices of our debt securities, which are level 1 inputs.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 were as follows:



(In millions)	Fair Value

	2015		2014
Assets:
Derivative asset financial instruments (level 2)	$	6.8	$	5.6
Deferred compensation program assets (level 2)		3.1		3.3
Total assets	$	9.9	$	8.9
Liabilities:
Derivative liability financial instruments (level 2)	$	3.1	$	5.4

The principal derivative financial instruments we enter into on a routine basis are foreign exchange contracts. In addition, from time to time, we enter into commodity swaps. Derivative financial instruments are recorded at fair value.

In 2015 and 2014, we did not record impairment charges in operating income. In 2013, we recorded pre-tax intangible asset impairment charges of $21.2 million, refer to Note 7, “Asset Impairment Charges,” for additional information. There were no losses for indefinite-lived intangible assets in 2015, 2014 and 2013.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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