Fair Value Measurement

3 Months Ended

Mar. 31, 2023

Fair Value Measurement

Fair Value Measurement

12.    Fair Value Measurement

All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement or disclosure:

● Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at measurement date;

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

● Level 3: Unobservable inputs for the asset or liability.

12.    Fair Value Measurement (continued)

		March 31, 2023				December 31, 2022
		Carrying				Carrying
	Category	amount		Fair value		amount		Fair value
Fair values disclosed:
Loans receivable	Level 2	$	23.4	$	23.3	$	23.4	$	23.3
Derivative financial assets
Forward currency contracts	Level 2		0.2		0.2		0.2		0.2
Long-term debt
Senior secured and unsecured notes
2016 Notes	Level 1		—		—		496.3		491.9
2023 Secured Notes	Level 1		542.3		565.1		—		—
2023 Unsecured Notes	Level 1		788.8		835.5		—		—
Term loans	Level 2		1,889.3		1,909.8		85.2		85.5

The fair value of the loan receivables with a maturity date greater than one year are determined by estimating discounted cash flows using market rates. The carrying values of the term loans, before deduction of deferred debt issuance costs, approximate their fair values as the interest rates on the loans is short-term in nature. The fair values of the senior secured and unsecured notes are determined by reference to a quoted market price traded in an over-the-counter broker market.

The Company holds derivative financial assets and liabilities that are required to be measured at fair value on a recurring basis. The fair values of the forward currency contracts are determined using observable Level 2 inputs, including foreign currency spot exchange rates and forward pricing curves. The fair value considers the credit risk of the Company and its counterparties.