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, 2018 and 2017. Our debt securities could transfer into or out of a Level 1 or 2 measure depending on the availability of independent and current pricing at the end of each quarter. During 2018, 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, 2018
	Level 1		Level 2		Level 3
	(In thousands)
Assets:
Short-term investments:
Equity securities	$	33,250	$	778	$	—
Mortgage-CMO debt securities		—		8		—
Total short-term investments	$	33,250	$	786	$	—


	Fair Value as of December 31, 2017
	Level 1		Level 2		Level 3
	(In thousands)
Assets:
Short-term investments:
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. Based upon our review of the fair value hierarchy, the inputs used in these fair value measurements were considered Level 3 inputs.

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 and revolving credit facilities 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,
				2018							2017
	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
9.25% senior notes due January 2019	—	%		—		—	9.77	%		303,489			321,028
5.00% senior notes due September 2020	5.25	%		614,748		590,336	5.43	%		669,846			670,757
4.625% senior notes due September 2021	4.75	%		668,347		603,457	4.76	%		695,108			665,003
5.50% senior notes due January 2023	5.84	%		586,000		465,999	5.85	%		600,000			584,850
5.10% senior notes due September 2023	5.26	%		342,923		262,494	5.28	%		346,576			325,844
0.75% senior exchangeable notes due January 2024	6.04	%		450,689		358,012	5.90	%		429,982			443,940
5.75% senior notes due February 2025	5.87	%		791,502		598,953	—	%		—			—
2012 Revolving credit facility	3.58	%		170,000		170,000	2.73	%		510,000			510,000
2018 Revolving credit facility	—	%		—		—	—	%		—			—
Commercial paper	—	%		—		—	1.87	%		40,000			40,000
Other	—	%		561		561	—	%		181			181
				3,624,770	$	3,049,812				4,055,944		$	4,024,277
Less: current portion				561						181
Less: deferred financing costs				38,325						27,997
			$	3,585,884					$	4,027,766

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, 2018, our short-term investments were carried at fair market value and included $34.0 million. As of December 31, 2017, our short-term investments were carried at fair market value and included $28.4 million.