Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Fair Value Measurements

Fair Value Measurements

Note 4 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.

Our financial assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 consisted of available-for-sale equity and debt securities. 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. There were no transfers of our financial assets between Level 1 and Level 2 measures during the three months ended March 31, 2021. 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. As of March 31, 2021 and December 31, 2020, our short-term investments were carried at fair market value and totaled $17 thousand and $9.5 million, respectively, and primarily consisted of Level 1 measurements. No material Level 2 or Level 3 measurements exist as of any of the periods presented.

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 related to assets held for sale, goodwill, intangible assets and other long-lived assets and assets acquired and liabilities assumed in a business combination. 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. The fair value of our debt instruments is determined using Level 2 measurements. The carrying and fair values of these liabilities were as follows:

		March 31, 2021				December 31, 2020
		Carrying		Fair		Carrying		Fair
		Value		Value		Value		Value
	(In thousands)
4.625% senior notes due September 2021		$	86,389	$	85,470	$	86,329	$	78,862
5.50% senior notes due January 2023			25,425		23,830		28,443		18,768
5.10% senior notes due September 2023			120,109		108,324		121,077		78,435
0.75% senior exchangeable notes due January 2024			250,776		214,969		279,700		169,458
5.75% senior notes due February 2025			586,308		436,067		610,818		318,871
6.50% senior priority guaranteed notes due February 2025			50,485		47,772		50,485		44,059
9.00% senior priority guaranteed notes due February 2025			218,082		223,695		192,032		185,221
7.25% senior guaranteed notes due January 2026			559,978		467,318		559,978		396,106
7.50% senior guaranteed notes due January 2028			389,609		320,095		389,609		267,369
2018 revolving credit facility			632,500		632,500		672,500		672,500
			2,919,661	$	2,560,041		2,990,971	$	2,229,649
Less: deferred financing costs			20,782				22,270
		$	2,898,879			$	2,968,701

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.