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Fair Value Measurements
6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements

8.

Fair Value Measurements

The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments at June 30, 2019 and December 31, 2018:

 

 

 

June 30, 2019

 

 

December 31, 2018

 

 

Input

 

Carrying

 

 

Fair

 

 

Carrying

 

 

Fair

 

 

Level

 

Amount

 

 

Value

 

 

Amount

 

 

Value

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

Level 1

 

$

48.9

 

 

$

48.9

 

 

$

234.6

 

 

$

234.6

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

Level 2

 

 

111.6

 

 

 

111.6

 

 

 

1.8

 

 

 

1.8

 

Floating Rate Senior notes due January 25, 2019

Level 2

 

 

0.0

 

 

 

0.0

 

 

 

300.0

 

 

 

299.9

 

2.45% Senior notes due December 15, 2019

Level 2

 

 

300.0

 

 

 

299.8

 

 

 

300.0

 

 

 

297.4

 

Term loan due May 1, 2022

Level 2

 

 

300.0

 

 

 

300.0

 

 

 

0.0

 

 

 

0.0

 

2.45% Senior notes due August 1, 2022

Level 2

 

 

299.8

 

 

 

300.2

 

 

 

299.7

 

 

 

289.7

 

2.875% Senior notes due October 1, 2022

Level 2

 

 

399.9

 

 

 

403.8

 

 

 

399.9

 

 

 

393.0

 

3.15% Senior notes due August 1, 2027

Level 2

 

 

424.6

 

 

 

427.6

 

 

 

424.6

 

 

 

400.0

 

3.95% Senior notes due August 1, 2047

Level 2

 

 

397.3

 

 

 

401.2

 

 

 

397.2

 

 

 

363.7

 

Business Acquisition Liabilities

Level 3

 

 

202.7

 

 

 

202.7

 

 

 

23.0

 

 

 

23.0

 

Fair value adjustment asset (liability) related to hedged fixed rate

   debt instrument

Level 2

 

 

(0.8

)

 

 

(0.8

)

 

 

(3.0

)

 

 

(3.0

)

Interest Rate Swap Lock Agreement

Level 2

 

 

(25.4

)

 

 

(25.4

)

 

 

(7.0

)

 

 

(7.0

)

 

The Company recognizes transfers between input levels as of the actual date of the event.  There were no transfers between input levels during the six months ended June 30, 2019.

Refer to Note 2 in the Form 10-K for a description of the methods and assumptions used to estimate the fair value of each class of financial instruments reflected in the condensed consolidated balance sheets.  

The business acquisition liabilities represent the estimated fair value of additional future earn-outs payable for acquisitions of businesses that included earn-out clauses. The valuation of the contingent consideration will be evaluated on an ongoing basis and is based on management estimates and entity-specific assumptions which are considered Level 3 inputs.  A portion of the business acquisition liabilities are included in accounts payable and accrued expenses.

The carrying amounts of accounts receivable, and accounts payable and accrued expenses, approximated estimated fair values as of June 30, 2019 and December 31, 2018.