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Financial Instruments and Fair Value Measurements
 6 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Financial Instruments and Fair Value Measurements Financial Instruments and Fair Value Measurements
The following reconciles Cash and cash equivalents reported within the condensed combined balance sheets as of March 31, 2022 and September 30, 2021, to the total amounts shown on the condensed combined statements of cash flows:
March 31, 2022 September 30, 2021
Cash and cash equivalents$264.3 $— 
Cash and cash equivalents as of March 31, 2022 includes cash held in money market funds and other cash equivalents. All cash and cash equivalents are Level 1 in the fair value hierarchy.
Nonrecurring Fair Value Measurements
Non-financial assets, including property, plant and equipment as well as intangible assets, are measured at fair value when there are indicators of impairment and these assets are recorded at fair value only when an impairment is recognized. These measurements of fair value are generally based upon Level 3 inputs, including values estimated using the income approach.
During the six months ended March 31, 2021, the Company recorded impairment charges related to certain construction in progress assets related to discontinued projects totaling $10.0 million. The impairment charges were recorded to adjust the carrying amount of the assets to the assets’ fair values, which were estimated through a discounted cash flow model that utilized Level 3 inputs. The impairment charges are recognized within Cost of products sold in the condensed combined statement of income. There were no impairment charges during the three and six months ended March 31, 2022.
Concentration of Credit Risk
As of March 31, 2022, the Company’s operations form part of BD’s monitoring of concentrations of credit risk associated with financial institutions with which BD conducts business. Therefore, the Company is exposed to credit loss in the event of nonperformance by such financial institutions. However, this loss is limited to the amounts, if any, by which the obligations of the counterparty to the financial instrument contract exceed the obligations of BD. BD also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions.
Substantially all of the Company’s trade receivables are due from public and private entities involved in the healthcare industry. The Company does not normally require collateral from its customers. As of March 31, 2022, the Company had transferred the majority of its trade receivables to BD under the Factoring Agreement (see Note 3). As a result, the Company is no longer exposed to credit risk associated with those transferred receivables and does not have material credit risk exposure associated with the remaining $15.2 million of trade receivables. Three of the Company’s customers represent at least 10.0% of total revenues individually and, in the aggregate, represent approximately 43.6% for the three
months ended March 31, 2022, and two customers represent at least 10.0% of total revenues individually and, in the aggregate, represent 31.2% of total revenues for the six months ended March 31, 2022.