XML 34 R24.htm IDEA: XBRL DOCUMENT v3.22.1
FAIR VALUE MEASUREMENT
3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT FAIR VALUE MEASUREMENT
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:
Level I - Quoted prices for identical instruments in active markets.
Level II - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level III - Instruments whose significant value drivers are unobservable.
The following table presents the Company's financial assets and financial liabilities that are measured at fair value on a recurring basis and their classification under the fair value hierarchy:
Fair Value
Hierarchy
March 31, 2022December 31, 2021
Assets:
Money market funds
Level I$131,259 $100,015 
Investment securities pledged as collateralLevel I2,011,164 2,161,937 
Prepaid forward contractsLevel II— — 
Interest rate swap contractsLevel II53,539 2,993 
Liabilities:
Prepaid forward contractsLevel II60,868 161,942 
Interest rate swap contractsLevel II30,084 118,432 
The Company's money market funds which are classified as cash equivalents and investment securities pledged as collateral are classified within Level I of the fair value hierarchy because they are valued using quoted market prices.
The Company's derivative contracts and liabilities under derivative contracts on the Company's consolidated balance sheets are valued using market-based inputs to valuation models. These valuation models require a variety of inputs, including contractual terms, market prices, yield curves, and measures of volatility. When appropriate, valuations are
adjusted for various factors such as liquidity, bid/offer spreads and credit risk considerations. Such adjustments are generally based on available market evidence. Since model inputs can generally be verified and do not involve significant management judgment, the Company has concluded that these instruments should be classified within Level II of the fair value hierarchy.
Fair Value of Financial Instruments
The following methods and assumptions were used to estimate fair value of each class of financial instruments for which it is practicable to estimate:
Credit Facility Debt, Collateralized Indebtedness, Senior Notes, Senior Guaranteed Notes, Senior Secured Notes, Notes Payable, and Supply Chain Financing
The fair values of each of the Company's debt instruments are based on quoted market prices for the same or similar issues or on the current rates offered to the Company for instruments of the same remaining maturities. The fair value of notes payable is based primarily on the present value of the remaining payments discounted at the borrowing cost. The carrying value of outstanding amounts related to supply chain financing agreements approximates the fair value due to their short-term maturity (less than one year).
The carrying values, estimated fair values, and classification under the fair value hierarchy of the Company's financial instruments, excluding those that are carried at fair value in the accompanying consolidated balance sheets, are summarized below:
March 31, 2022December 31, 2021
Fair Value
Hierarchy
Carrying
Amount (a)
Estimated
Fair Value
Carrying
Amount (a)
Estimated
Fair Value
Credit facility debtLevel II$8,318,764 $8,366,750 $8,495,611 $8,546,438 
Collateralized indebtednessLevel II1,716,600 1,727,051 1,706,997 1,741,710 
Senior guaranteed notes and senior secured notesLevel II8,078,369 7,610,688 8,077,372 8,180,813 
Senior notesLevel II7,957,142 7,203,109 7,950,241 7,883,071 
Notes payable and supply chain financingLevel II132,874 132,861 97,804 97,588 
$26,203,749 $25,040,459 $26,328,025 $26,449,620 
(a)Amounts are net of unamortized deferred financing costs and discounts/premiums.
The fair value estimates related to the Company's debt instruments presented above are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.