Fair Value Measures and Disclosures

12 Months Ended

Dec. 31, 2022

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company is required to record certain assets and liabilities at fair value. The valuation methods used for determining the fair value of these financial instruments by hierarchy are as follows:

Level 1 Cash and cash equivalents consist of various bank accounts used to support our operations and investments in institutional money-market funds that are traded in active markets. The restricted cash represents cash held in a “Rabbi” trust, further described in Note 5.

Level 2 Derivative financial instruments include an interest rate swap contract and foreign exchange contracts. The fair value of our derivative instruments is estimated using standard valuation models and market-based observable inputs over the contractual term, including the prevailing SOFR based yield curves for the interest rate swap, and forward rates and/or the Overnight Index Swap curve for forward foreign exchange contracts, among others. The fair value of our debt is estimated based on independent broker/dealer bids or by comparison to other debt securities having similar durations, yields and credit ratings.

Level 3 No Level 3 financial instruments

The following table presents financial instruments that we measure at fair value on a recurring basis:


	Fair Value Measurements at Reporting Date Using
(In thousands)	Level 1				Level 2				Level 3				Total
Assets:	2022		2021		2022		2021		2022		2021		2022		2021
Cash and cash equivalents	$	561,559	$	402,565	$	—	$	—	$	—	$	—	$	561,559	$	402,565
Restricted cash	1,880		—		—		—		—		—		1,880		—
Derivative financial instruments - Interest rate swap - cash flow hedge	—		—		46,589		—		—		—		46,589		—
Derivative financial instruments -Forward exchange contracts	—		—		726		—		—		—		726		—
Total Assets	$	563,439	$	402,565	$	47,315	$	—	$	—	$	—	$	610,754	$	402,565

Liabilities:
Derivative financial instruments - Forward exchange contracts	$	—	$	—	$	193	$	—	$	—	$	—	$	193	$	—
Total Liabilities	$	—	$	—	$	193	$	—	$	—	$	—	$	193	$	—

Other Fair Value Disclosures

The estimated fair value and carrying value of our debt as of December 31, 2022 and 2021 were as follows:


	December 31, 2022				December 31, 2021
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Total debt, net	$	5,784,893	$	5,428,900	$	937,027	$	952,500

- 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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