Fair Value Measurements

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

Marketable Securities

As of June 30, 2024 and December 31, 2023, marketable securities of $19.7 million and $29.8 million, respectively, are stated at fair value based on valuations provided by third-party pricing services and are classified within Level 2 of the valuation hierarchy.

Interest Rate Derivatives

The Company's derivative assets include interest rate cap and swap instruments that effectively manage the risk above certain interest rates for a portion of the Company's long-term variable rate debt. The Company has not designated the interest rate cap and swap instruments as hedging instruments and as such, changes in the fair value of the instruments are recognized in earnings in the period of the change. The interest rate derivative positions are valued using models developed by the respective counterparty that use as their basis readily available observable market parameters (such as forward yield curves) and are classified within Level 2 of the valuation hierarchy. The Company considers the credit risk of its counterparties when evaluating the fair value of its derivatives.

The following table summarizes the Company's Secured Overnight Financing Rate ("SOFR") interest rate cap instruments as of June 30, 2024.

($ in millions)
Current notional balance	$	1,257.5
Weighted average fixed cap rate	3.90		%
Weighted average remaining term	0.7 years
Estimated asset fair value (included in other assets, net)	$	15.5

As of December 31, 2023, the estimated fair value of the interest rate cap instruments was $13.3 million.

The following table summarizes the Company's SOFR interest rate swap instrument as of June 30, 2024.

($ in millions)
Current notional balance	$	220.0
Fixed interest rate	4.25		%
Remaining term	1.3 years
Estimated asset fair value (included in other assets, net)	$	1.6

As of December 31, 2023, the estimated fair value of the interest rate swap instrument was $1.6 million.

Long-term debt

The Company estimates the fair value of its debt primarily using a discounted cash flow analysis based upon the Company's current borrowing rate for debt with similar maturities and collateral securing the indebtedness. The Company estimates the fair value of its convertible senior notes based on valuations provided by third-party pricing services. The Company had outstanding long-term debt with a carrying amount of approximately $3.7 billion as of both June 30, 2024 and December 31, 2023. Fair value of the long-term debt is approximately $3.5 billion and $3.4 billion as of June 30, 2024 and December 31, 2023, respectively. The Company's fair value of long-term debt disclosure is classified within Level 2 of the valuation hierarchy.