Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.22.2.2
Fair Value Measurements
9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements
13.
Fair Value Measurements

The Company determines fair value measurements in accordance with ASC Topic 820, which establishes a fair value hierarchy under which an asset or liability is categorized based on the lowest level of input significant to its fair value measurement. The levels of input defined by ASC Topic 820 are as follows:

Level 1 – quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date;

Level 2 – other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3 – unobservable and should be used to measure fair value to the extent that observable inputs are not available.

Below is a summary of assets and liabilities measured at fair value on a recurring basis under FASB ASC Topic 820 as of September 30, 2022 and December 31, 2021:

 

 

 

 

Carrying

 

 

Fair Value Hierarchy

 

Description

 

As of

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Interest rate swap assets  (1)

 

September 30, 2022

 

$

20.2

 

 

$

 

 

$

20.2

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap liabilities (1)

 

December 31, 2021

 

$

14.6

 

 

$

 

 

$

14.6

 

 

$

 

(1)
See further discussion of interest rate swaps at Note 7.

The market approach is used for fair value measurements on a nonrecurring basis in the impairment evaluations of its goodwill, intangible assets and long-lived assets (see Note 11 and Note 12). See additional explanation of fair value measurement techniques used for long-lived assets, goodwill and intangible assets in “Critical Accounting Policies” in the Holdings' Annual Report on Form 10-K for the year ended December 31, 2021, filed February 25, 2022 and the CUSA's Annual Report on Form 10-K for the year ended December 31, 2021, filed March 9, 2022. There were no changes in valuation techniques. There were no transfers into or out of Level 1, Level 2 or Level 3 during the nine months ended September 30, 2022.