Financial Instruments

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Financial Instruments

10. Financial Instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Inputs used to measure fair value are classified in the following hierarchy:

Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 Other inputs that are observable directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, or inactive quoted prices for identical assets or liabilities in inactive markets;

Level 3 Unobservable inputs reflecting assumptions about the inputs used in pricing the asset or liability.

We endeavor to utilize the best available information to measure fair value.

The carrying value of Cash and cash equivalents, Short-term investments and Restricted cash is based on cost, which approximates fair value.

Term loans and notes consist of term loans, notes guaranteed by the Export-Import Bank of the United States, the Promissory Note issued to the U.S. Treasury and equipment enhanced trust certificates. The fair values of these debt instruments and the Revolver are based on a discounted cash flow analysis using current borrowing rates for instruments with similar terms.

The fair value of our Convertible Notes is based on unadjusted quoted market prices for these securities.

The fair value of a customer warrant liability and certain long-term performance-based restricted shares are based on a Monte Carlo simulation which requires inputs such as our common stock price, the warrant strike price, estimated common stock price volatility, and risk-free interest rate, among others.

The following table summarizes the carrying value, estimated fair value and classification of our financial instruments as of:

	June 30, 2020
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	726,402	$	726,402	$	726,402	$	-	$	-
Restricted cash		12,776		12,776		12,776		-		-
	$	739,178	$	739,178	$	739,178	$	-	$	-
Liabilities
Term loans and notes	$	1,850,350	$	1,886,041	$	-	$	-	$	1,886,041
Revolver		175,000		170,057		-		-		170,057
Convertible notes (1)		448,883		479,134		479,134		-		-
Customer warrant		39,539		39,539		-		39,539		-
	$	2,513,772	$	2,574,771	$	479,134	$	39,539	$	2,056,098

	December 31, 2019
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	103,029	$	103,029	$	103,029	$	-	$	-
Short-term investments		879		879		-		-		879
Restricted cash		10,401		10,401		10,401		-		-
	$	114,309	$	114,309	$	113,430	$	-	$	879
Liabilities
Term loans and notes	$	1,800,911	$	1,885,750	$	-	$	-	$	1,885,750
Revolver		100,000		103,575		-		-		103,575
Convertible notes (1)		439,261		450,668		450,668		-		-
Customer warrant		24,345		24,345		-		24,345		-
	$	2,364,517	$	2,464,338	$	450,668	$	24,345	$	1,989,325

(1) Carrying value is net of debt discounts and debt issuance costs (see Note 8).