|12 Months Ended|
Sep. 30, 2021
|Fair Value Disclosures [Abstract]|
|Fair Value||FAIR VALUE
The only asset the Company had as of September 30, 2021 that was recorded at fair value on a recurring basis is the deferred compensation asset, related to the portion invested in mutual funds. These mutual funds prices are quoted in active markets and therefore are classified as Level 1. As of September 30, 2021, the Company also has two liabilities recorded at fair value on a recurring basis, which are an interest rate swap and contingent consideration related to acquisitions. The Company obtains its Level 2 pricing inputs from its counterparty for the interest rate swap. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. The contingent consideration liability is considered Level 3, as the inputs are not observable and based on internal assumptions.
The fair values of receivables, prepaids, other assets, accounts payable, accrued costs, and other current liabilities approximate the carrying values as a result of the short-term nature of these instruments. The carrying value of debt was $1.51 billion and $28.9 million as of September 30, 2021 and 2020, respectively, approximates the fair value as the stated interest rates in the agreements are consistent with the current market rates used in notes with similar terms in the markets (Level 2 inputs). The outstanding debt as of September 30, 2021 was obtained on May 28, 2021.
Other long-lived assets are reviewed when events indicate they may no longer be able to recover their value. Assets which we cease using or which do not appear able to generate sufficient future cash flows to support their values are reviewed and, where necessary, their value is written down. In this instance, the expense is reported in the same place where future expenses were anticipated to be recorded. For example, a fixed asset impairment would be recorded in depreciation expense. All the non-recurring fair values are considered Level 3, as the inputs are not observable and based on internal assumptions. During the years ending September 30, 2021, 2020, and 2019, we recorded impairment charges of $12.5 million, $1.2 million, and $3.7 million on long-lived assets within our U.S. Services and Outside the U.S. Services Segments relating to underperforming contracts.
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.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef