Fair value is defined as the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (that is, an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).

The following hierarchy for inputs used in measuring fair value should maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs be used when available:

The carrying amounts shown for the Company’s cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate fair value due to the short-term maturity of those instruments. The valuation is based on settlements of similar financial instruments all of which are short-term in nature and are generally settled at or near cost.

A non-qualified deferred compensation plan is available to certain executives. Under this plan, participants may elect to defer up to 70% of their compensation. The Company invests the deferrals in participant-selected diversified investments that are held in a Rabbi Trust and which are classified within Other assets on the consolidated balance sheets. The fair value of the investments held in the Rabbi Trust is based on the quoted market prices of the underlying mutual fund investments. These investments are based on the participants’ selected investments, which represent the underlying liabilities to the participants in the non-qualified deferred compensation plan.

The Company’s objective in entering into derivative transactions is to manage its exposure to interest rate movements associated with its variable rate debt and changes in fuel prices. The Company recognizes derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value. The fair values of the derivative financial instruments are determined using widely accepted valuation techniques including discounted cash flow analysis based on the expected cash flows of each derivative. Although the Company has determined that the significant inputs, such as interest yield curve and discount rate, used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with the Company’s counterparties and its own credit risk utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of September 30, 2020 and September 30, 2019, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and September 30, 2019:

	September 30, 2020
	Carrying Value		Level 1		Level 2		Level 3
Other assets:
Investments held by Rabbi Trust	$	11.4	$	11.4	$	—	$	—
Fuel hedges		0.7		—		0.7		—
Total Assets	$	12.1	$	11.4	$	0.7	$	—
Accrued expenses and other current liabilities:
Interest rate swap contracts	$	4.5	$	—	$	4.5	$	—
Fuel hedges		0.8		—		0.8		—
Other liabilities:
Interest rate swap contracts		5.5		—		5.5		—
Obligation to Rabbi Trust		11.4		11.4		—		—
Total Liabilities	$	22.2	$	11.4	$	10.8	$	—

	September 30, 2019
	Carrying Value		Level 1		Level 2		Level 3
Other assets:
Investments held by Rabbi Trust	$	11.1	$	11.1	$	—	$	—
Total Assets	$	11.1	$	11.1	$	—	$	—
Accrued expenses and other current liabilities:
Interest rate swap contracts	$	6.3	$	—	$	6.3	$	—
Other liabilities:
Interest rate swap contracts		10.9		—		10.9		—
Obligation to Rabbi Trust		11.1		11.1		—		—
Total Liabilities	$	28.3	$	11.1	$	17.2	$	—

As of September 30, 2020 and September 30, 2019, the Company’s outstanding derivatives qualify as cash flow hedges. The Company assesses whether derivatives used in hedging transactions are “highly effective” in offsetting changes in the cash flow of the hedged forecasted transactions. Regression analysis is used for the hedge relationships and high effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the fair values of the derivative and the hedged forecasted transaction. The entire change in the fair value of the derivative included in the assessment of hedge effectiveness is initially reported in Other comprehensive income (loss) and subsequently reclassified to Interest expense (interest rate contracts) and Cost of services provided (fuel hedge contracts) in the Consolidated Statements of Operations when the hedged item affects earnings. The ineffective portion of changes in the fair value of the derivative is recognized directly to Interest expense and Cost of services provided in the period incurred. If it is determined that a derivative is not highly effective as a hedge, or if the hedged forecasted transaction is no longer probable of occurring, then the amount recognized in Accumulated other comprehensive loss is released to earnings. Cash flows from the derivatives are classified in the same category as the cash flows from the underlying hedged transaction.

The Company has exposures to variability in interest rates associated with its variable interest rate debt, which historically has included the Credit Agreement and Second Lien Credit Agreement. As such, the Company has entered into interest rate swaps to help manage interest rate exposure by economically converting a portion of its variable rate debt to fixed rate debt effective for the periods March 18, 2016 through December 31, 2022. The notional amount of interest rate contracts was $980.0 and $1,000.0 at September 30, 2020 and September 30, 2019, respectively. The net deferred losses on the interest rate swaps as of September 30, 2020 of $7.2, net of taxes, are expected to be recognized in Interest expense over the next 12 months.

The effects on the consolidated financial statements of the interest rate swaps which were designated as cash flow hedges were as follows:

	Fiscal Year Ended
	September 30, 2020			September 30, 2019			September 30, 2018
(Loss) income recognized in Other comprehensive income (loss)	$	(10.3	)	$	(10.2	)	$	9.8
Net loss reclassified from Accumulated other comprehensive loss into Interest expense		(16.9	)		(8.1	)		(9.8	)

The Company has exposures to variability in fuel pricing associated with its purchase and usage of fuel during the ordinary course of business operating a large fleet of vehicles and equipment. As such, the Company has entered into gasoline hedge contracts to help reduce its exposure to volatility in the fuel markets. As of September 30, 2020, the Company has five outstanding fuel contracts covering the period January 1, 2020 through December 31, 2021 with a notional amount of $13.2. The net deferred losses on the fuel swaps as of September 30, 2020 were immaterial and are expected to be recognized in Cost of services provided over the next 12 months.

The effects on the consolidated financial statements of the fuel swaps which were designated as cash flow hedges were as follows:

	Fiscal Year Ended
	September 30, 2020			September 30, 2019		September 30, 2018
(Loss) income recognized in Other comprehensive income (loss)	$	(2.7	)	$	1.4	$	0.1
Net (loss) gain reclassified from Accumulated other comprehensive loss into Cost of services provided		(2.4	)		1.1		—