Fair Value Measurements (Tables)

9 Months Ended

Oct. 01, 2020

The guidance discloses three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market.

Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Observable inputs, such as current and forward interest rates and foreign exchange rates, are used in determining the fair value of the interest rate swaps and foreign currency hedge contracts.

Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Carrying Amount And Estimated Fair Value Of Long Term Debt

The following table presents the carrying amount and estimated fair value of long-term debt (table excludes First Lien 2025 Notes, which were issued after quarter end on October 5, 2020):


	October 1, 2020					December 31, 2019
	Carrying Amount		Fair Value			Carrying Amount		Fair Value
2018 Term Loan and 2018 DDTL (including current portion)	$	—	$	—	(2)	$	438.5	$	440.1	(2)
2018 Revolver	—		—		(2)	800.0		800.0		(2)
Senior unsecured floating rate notes due 2021	299.6		283.3		(1)	299.1		298.4		(1)
Senior unsecured notes due 2023	298.7		267.0		(1)	298.3		307.2		(1)
Senior secured notes due 2026	298.0		279.9		(1)	297.8		305.6		(1)
Senior unsecured notes due 2028	694.5		575.3		(1)	694.1		734.4		(1)
Senior secured notes due 2025 (Second Lien 2025 Notes)	1,183.4		1,204.2		(1)	$	—	$	—
Total	$	2,774.2	$	2,609.7		$	2,827.8	$	2,885.7

(1)Level 1 Fair Value hierarchy

(2)Level 2 Fair Value hierarchy