5. FAIR VALUE

The fair value accounting guidance 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 fair 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, as of September 30, 2013 and December 31, 2012, are as follows:



	September 30, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Input
	(in millions)				(in millions)
Balance Sheet Classification
Cash equivalents	$	7.2	$	7.2	$	6.5	$	6.5	Level 1
Prepaid expenses and other current assets
Currency forward contracts	0.6		0.6		2.3		2.3		Level 2
Other assets and deferred charges
Currency forward contracts	0.1		0.1		—		—		Level 2
Accrued expenses and other current liabilities
Currency forward contracts	0.5		0.5		—		—		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 values due to the frequent resetting of the interest rates. 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, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Input
	(in millions)				(in millions)

9.25% Notes	$	337.9	$	360.4	$	337.5	$	377.4	Level 2
7.875% Notes	—		—		300.0		310.1		Level 2
7.75% Notes	200.0		220.5		200.0		216.5		Level 2
6.625% Notes	550.0		562.4		550.0		555.5		Level 2
6.25% Notes	400.0		409.0		—		—		Level 2