Fair Value Measurements

12 Months Ended

Sep. 30, 2015

The following table presents, on a gross basis, our financial assets and liabilities including both current and noncurrent portions, that are measured at fair value on a recurring basis within the fair value hierarchy as described in Note 2, as of September 30, 2015 and 2014:



	Asset (Liability)
	Level 1			Level 2			Level 3		Total
September 30, 2015:
Derivative instruments:
Assets:
Commodity contracts	$	17.4		$	11.6		$	—	$	29.0
Foreign currency contracts	$	—		$	29.1		$	—	$	29.1
Cross-currency swaps	$	—		$	0.4		$	—	$	0.4
Interest rate contracts	$	—		$	—		$	—	$	—
Liabilities:
Commodity contracts	$	(70.0	)	$	(99.0	)	$	—	$	(169.0	)
Foreign currency contracts	$	—		$	(0.1	)	$	—	$	(0.1	)
Interest rate contracts	$	—		$	(10.8	)	$	—	$	(10.8	)

Non-qualified supplemental postretirement grantor trust investments (a)	$	30.3		$	—		$	—	$	30.3

September 30, 2014
Derivative instruments:
Assets:
Commodity contracts	$	10.6		$	19.8		$	—	$	30.4
Foreign currency contracts	$	—		$	12.8		$	—	$	12.8
Cross-currency swaps	$	—		$	2.1		$	—	$	2.1
Interest rate contracts	$	—		$	0.1		$	—	$	0.1
Liabilities:
Commodity contracts	$	(21.2	)	$	(32.9	)	$	—	$	(54.1	)
Foreign currency contracts	$	—		$	(0.1	)	$	—	$	(0.1	)
Interest rate contracts	$	—		$	(21.0	)	$	—	$	(21.0	)

Non-qualified supplemental postretirement grantor trust investments (a)	$	30.0		$	—		$	—	$	30.0


(a)	Consists primarily of mutual fund investments held in grantor trusts associated with non-qualified supplemental retirement plans (see Note 8).

The fair values of our Level 1 exchange-traded commodity futures and option contracts and non exchange-traded commodity futures and forward contracts are based upon actively-quoted market prices for identical assets and liabilities. The remainder of our derivative instruments are designated as Level 2. The fair values of certain non-exchange traded commodity derivatives designated as Level 2 are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. For commodity option contracts designated as Level 2 which are not traded on an exchange, we use a Black Scholes option pricing model that considers time value and volatility of the underlying commodity. The fair values of our Level 2 interest rate contracts and foreign currency contracts are based upon third-party quotes or indicative values based on recent market transactions. The fair values of investments held in grantor trusts are derived from quoted market prices as substantially all of the investments in these trusts have active markets. There were no transfers between Level 1 and Level 2 during the periods presented.

Other Financial Instruments

The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because of their short-term nature. At September 30, 2015, the carrying amount and estimated fair value of our long-term debt (including current maturities) were $3,699.8 and $3,803.1, respectively. At September 30, 2014, the carrying amount and estimated fair value of our long-term debt (including current maturities) were $3,510.8 and $3,686.1, respectively. We estimate the fair value of long-term debt by using current market rates and by discounting future cash flows using rates available for similar type debt (Level 2).

Financial instruments other than derivative instruments, such as our short-term investments and trade accounts receivable, could expose us to concentrations of credit risk. We limit our credit risk from short-term investments by investing only in investment-grade commercial paper, money market mutual funds, securities guaranteed by the U.S. Government or its agencies and FDIC insured bank deposits. The credit risk from trade accounts receivable is limited because we have a large customer base which extends across many different U.S. markets and several foreign countries. For information regarding concentrations of credit risk associated with our derivative instruments, see Note 18. Our investment in a private equity partnership is measured at fair value on a non-recurring basis. Generally this measurement uses Level 3 fair value inputs because the investment does not have a readily available market value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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