Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Measurements

Fair Value Measurements

Note 6 Fair Value Measurements

Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market‑corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information available. Accordingly, we employ valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. We are able to classify fair value balances utilizing a fair value hierarchy based on the observability of those inputs. Under the fair value hierarchy:

· Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market;

· Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and

· Level 3 measurements include those that are unobservable and of a subjective nature.

The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis as of December 31, 2017. During 2017, there were no transfers of our financial assets between Level 1 and Level 2 measures. Our financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Fair Value as of December 31, 2017
	Level 1		Level 2		Level 3
	(In thousands)
Assets:
Short-term investments:
Available-for-sale equity securities	$	22,909	$	5,450	$	—
Mortgage-CMO debt securities		—		10		—
Total short-term investments	$	22,909	$	5,460	$	—

Nonrecurring Fair Value Measurements

We applied fair value measurements to our nonfinancial assets and liabilities measured on a nonrecurring basis, which consist of measurements primarily to assets held-for-sale, goodwill, intangible assets and other long‑lived assets, assets acquired and liabilities assumed in a business combination and our pipeline contractual commitment.

Fair Value of Financial Instruments

We estimate the fair value of our financial instruments in accordance with U.S. GAAP. The fair value of our long‑term debt, revolving credit facility and commercial paper is estimated based on quoted market prices or prices quoted from third‑party financial institutions, thus a level 2 measurement. The carrying and fair values of these liabilities were as follows:

	As of December 31,
				2017							2016
	Effective						Effective
	Interest		Carrying		Fair		Interest		Carrying			Fair
	Rate		Value		Value		Rate		Value			Value
			(In thousands)						(In thousands)
6.15% senior notes due February 2018	6.27	%	$	460,762	$	462,674	6.40	%	$	827,539		$	865,300
9.25% senior notes due January 2019	9.77	%		303,489		321,028	9.33	%		303,489			337,443
5.00% senior notes due September 2020	5.43	%		669,846		670,757	5.21	%		669,540			689,211
4.625% senior notes due September 2021	4.76	%		695,108		665,003	4.75	%		694,868			708,765
5.50% senior notes due January 2023	5.85	%		600,000		584,850	5.85	%		600,000			627,000
5.10% senior notes due September 2023	5.28	%		346,576		325,844	5.26	%		346,448			348,613
0.75% senior exchangeable notes due January 2024	5.90	%		429,982		443,940	—	%		—			—
Term loan facility	—	%		—		—	1.76	%		162,500			162,500
Revolving credit facility	2.73	%		510,000		510,000	1.86	%		—			—
Commercial paper	1.87	%		40,000		40,000	1.16	%		—			—
Other	—	%		181		181	—	%		297			297
				4,055,944	$	4,024,277				3,604,681		$	3,739,129
Less: deferred financing costs				27,997						26,049
			$	4,027,947					$	3,578,632

The fair values of our cash equivalents, trade receivables and trade payables approximate their carrying values due to the short‑term nature of these instruments.

As of December 31, 2017, our short-term investments were carried at fair market value and included $28.4 million in securities classified as available-for-sale. As of December 31, 2016, our short-term investments were carried at fair market value and included $31.1 million in securities classified as available-for-sale.