Fair Value Measurements

12 Months Ended

Dec. 31, 2023

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.

Recurring Fair Value Measurements

Our financial assets that are accounted for at fair value on a recurring basis as of December 31, 2023 and 2022 consisted of restricted cash held in trust and short-term investments. During 2023, there were no transfers of our financial assets between Level 1 and Level 2 measures. Our financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of December 31, 2023 and 2022, our restricted cash held in trust was carried at fair market value and totaled $315.5 million and $284.8 million, respectively, and our short-term investments was primarily held at cost and totaled $12.7 million and $1.3 million, respectively. Both accounts consisted of Level 1 measurements. No material Level 2 or Level 3 measurements existed for our financial assets for any of the periods presented.

Our financial liabilities that are accounted for at fair value on a recurring basis as of December 31, 2023 consisted of the Warrants and are included in other long-term liabilities in the accompanying consolidated financial statements. The Warrants were carried at fair market value using their trading price and totaled $25.9 million and $80.9 million as of December 31, 2023 and 2022, respectively.

Nonrecurring Fair Value Measurements

We apply 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, equity method investments 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 generally include Level 3 inputs, but could include Leve 1 and 2 inputs.

Fair Value of Debt Instruments

We estimate the fair value of our debt 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,
				2023						2022
		Effective						Effective
		Interest		Carrying		Fair		Interest		Carrying		Fair
		Rate		Value		Value		Rate		Value		Value
	(In thousands)
5.10% senior notes due September 2023		—	%	$	—	$	—	5.46	%	$	52,004	$	51,354
0.75% senior exchangeable notes due January 2024		0.84	%		155,529		154,989	0.97	%		177,005		164,898
5.75% senior notes due February 2025		5.97	%		474,092		474,120	6.02	%		474,092		454,773
9.00% senior priority guaranteed notes due February 2025		—	%		—		—	9.00	%		209,384		213,507
7.25% senior guaranteed notes due January 2026		7.53	%		555,902		535,328	7.52	%		557,902		529,432
7.375% senior priority guaranteed notes due May 2027		7.72	%		700,000		687,526	7.74	%		700,000		686,686
7.50% senior guaranteed notes due January 2028		7.69	%		389,609		334,090	7.70	%		389,609		354,400
1.75% senior exchangeable notes due June 2029		2.26	%		250,000		185,383	—	%		—		—
9.125% senior priority guaranteed notes due January 2030		9.40	%		650,000		656,871	—	%		—		—
				$	3,175,132	$	3,028,307			$	2,559,996	$	2,455,050
Less: current portion					629,621						—
Less: deferred financing costs					33,992						22,456
				$	2,511,519					$	2,537,540

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.