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Fair Value Measurements
 3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. ASC 820 prioritizes the inputs used in measuring fair value into the following fair value hierarchy:
•
Level 1 – Quoted prices for identical assets or liabilities in active markets.
•
Level 2 – Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs derived principally from or corroborated by observable market data by correlation or other means.
•
Level 3 – Unobservable inputs for the asset or liability. The fair value input hierarchy level to which an asset or liability measurement falls in its entirety is determined based on the lowest level input that is significant to the measurement in its entirety.
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, for each fair value hierarchy level:
 
 
Fair Value Measurements Using
In thousands
 
Quoted Prices in Active Markets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
March 31, 2020
 
 
Assets
 
 
 
 
 
 
 
 
Derivative financial instruments
 
$
—

 
$
99,859

 
$
—

 
$
99,859

Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments
 
—

 
(3,397
)
 
—

 
(3,397
)
Warrant
 
—

 
—

 
(1
)
 
(1
)
Stock-based compensation
 
(77
)
 
—

 
(27
)
 
(104
)
Total
 
$
(77
)
 
$
96,462

 
$
(28
)
 
$
96,357

 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
Assets:
 
 
 
 
 
 
 
 
Derivative financial instruments
 
$
—

 
$
6,849

 
$
—

 
$
6,849

Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments
 
—

 
(10,462
)
 
—

 
(10,462
)
Warrant
 
—

 
—

 
(364
)
 
(364
)
Stock-based compensation
 
(1,792
)
 
—

 
(573
)
 
(2,365
)
Total
 
$
(1,792
)
 
$
(3,613
)
 
$
(937
)
 
$
(6,342
)

Level 3 Fair Value Measurements
The table below sets forth a summary of changes in the fair value of the Company’s Level 3 liabilities for the three months ended March 31, 2020:
In thousands
 
Warrant
 
Stock-Based Compensation
 
Total
Balance as of December 31, 2019
 
$
(364
)
 
$
(573
)
 
$
(937
)
Unrealized gains
 
363

 
546

 
909

Balance as of March 31, 2020
 
$
(1
)
 
$
(27
)
 
$
(28
)

Other fair value measurements
The book values of cash and cash equivalents, accounts receivable and accounts payable, approximate fair value due to the short-term nature of these instruments. The carrying value of the Credit Facility (as defined in Note 7. below) approximates fair value since it is subject to a short-term floating interest rate that approximates the rate available to the Company. The fair value of the 11.25% Senior Notes (as defined in Note 8. below) was approximately $64.1 million as of March 31, 2020 and is considered a Level 3 liability, as they are based on market transactions that occur infrequently as well as internally generated inputs.