Fair value measurements and financial instruments

9 Months Ended

Sep. 30, 2024

Fair value measurements and financial instruments

Fair value measurements and financial instruments

Note 17 – Fair value measurements and financial instruments:

See Note 5 for amounts related to our marketable securities.

See Note 19 for information on how we determine fair value of our acquisition earn-out liability. The fair value measurement is based on significant inputs not observable in the market and therefore represents a Level 3 measurement as defined in ASC 820. There has been no activity subsequent to the Acquisition Date impacting the fair value of the acquisition earn-out liability. The fair value of the acquisition earn-out liability is included in “Other noncurrent liabilities” on the Condensed Consolidated Balance Sheet. See Note 9.

The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure:

	December 31, 2023				September 30, 2024
	Carrying		Fair		Carrying		Fair
	amount		value		amount		value
	(In millions)
Cash, cash equivalents and restricted cash equivalents	$	462.0	$	462.0	$	365.1	$	365.1
Long-term debt:
Kronos fixed rate 9.50% Senior Secured Notes due 2029		—		—		391.7		427.9
Kronos fixed rate 3.75% Senior Secured Notes due 2025		440.9		424.5		83.9		83.3
Kronos revolving credit facility		—		—		25.0		25.0
LandWell bank note payable		12.2		12.2		11.9		11.9

At September 30, 2024, the estimated market price of Kronos’ 9.50% Senior Secured Notes due 2029 was €1,089 per €1,000 principal amount, and the estimated market price of Kronos’ 3.75% Senior Secured Notes due 2025 was €993 per €1,000 principal amount. The fair values of Kronos’ Senior Secured Notes were based on quoted market prices; however, these quoted market prices represented Level 2 inputs because the markets in which the Senior Secured Notes trade were not active. Due to the variable interest rate, the carrying amount of Kronos’ revolving credit facility is deemed to approximate fair value. The fair value of other fixed-rate debt, which represents Level 2 inputs, is deemed to approximate carrying value. See Note 7. Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. See Notes 3 and 8.