Pursuant to ASC 820, the inputs used to derive the fair value of assets and liabilities are analyzed and assigned a level I, II or III priority, with level I being the highest and level III being the lowest in the hierarchy. Level I inputs are quoted prices in active markets for identical assets or liabilities.

Level II inputs are quoted prices for similar assets or liabilities in active markets: quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level III inputs are based on valuations derived from valuation techniques in which one or more significant inputs are unobservable.

The following table provides a summary of the company’s assets and liabilities that are measured on a recurring basis (in thousands):


	Basis for Fair Value Measurements at Reporting Date
	Quoted Prices in Active Markets for Identical Assets / (Liabilities)	Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Level I	Level II		Level III
September 30, 2022
Forward exchange contracts—net	—	$	(2,264)	—




Secured convertible 2026 debt conversion liability	—	(473)		—
December 31, 2021
Forward exchange contracts—net	—	$	(1,552)	—

The carrying values and fair values of the company’s financial instruments are as follows (in thousands):


	September 30, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Cash and cash equivalents	$	45,439	$	45,439	$	83,745	$	83,745


Forward contracts in Other current assets	2,626		2,626		386		386
Forward contracts in Accrued expenses	(4,890)		(4,890)		(1,938)		(1,938)
Total debt (including current maturities of long-term debt) *	(335,279)		(272,485)		(308,129)		(259,472)

2022 Notes	—		—		(2,642)		(2,632)
Series I 2024 Notes	(72,341)		(62,887)		(72,140)		(64,897)
Series II 2024 Notes	(75,764)		(63,963)		(78,251)		(74,165)
2026 Notes	(80,898)		(36,832)		(119,036)		(81,718)
2026 Secured Notes	(27,463)		(25,369)		—		—
2026 Term Loan	(59,724)		(64,345)		—		—
Other	(19,089)		(19,089)		(36,060)		(36,060)
Secured convertible 2026 debt conversion liability in Other Long-Term Obligations	(473)		(473)		—		—

________

* The company's total debt is shown net of discount and fees associated with the convertible senior notes and term loan due in 2022, 2024 and 2026 on the company's condensed consolidated balance sheets. Accordingly, the fair values due in 2022, 2024 and 2026 are included in the long-term debt presented in this table are also shown net of fees. Total debt amounts exclude operating and finance lease obligations.

The company, in estimating its fair value disclosures for financial instruments, used the following methods and assumptions:

Cash, cash equivalents: The carrying value reported in the balance sheet for cash, cash equivalents equals its fair value. The fair values are deemed to be categorized as Level 1.

Forward Contracts: The company operates internationally, and as a result, is exposed to foreign currency fluctuations. Specifically, the exposure includes intercompany loans and third-party sales or payments. In an attempt to reduce this exposure, foreign currency forward contracts are utilized and accounted for as hedging instruments. The forward contracts are used to hedge the following currencies: AUD, CAD, DKK, EUR, GBP, MXN, NOK, NZD, SEK, THB, and USD. The company does not use derivative financial instruments for speculative purposes. Fair values for the company’s foreign exchange forward contracts are based on quoted market prices for contracts with similar maturities. The fair values are deemed to be categorized as Level 2. The company's forward contracts are included in Other Current Assets or Accrued Expenses in the condensed consolidated balance sheets.

Total debt: Fair value for the company’s convertible debt other than the 2026 Secured Notes and Term Loan is based on quoted market-based estimates as of the end of the period, while the revolving credit facility fair value is based on an estimate of the market for similar borrowing arrangements. The fair values are deemed to be categorized as Level 2 in the fair value hierarchy. The 2026 Secured Notes and Term Loan fair values are based on valuation models in which significant inputs are observable in active markets. The fair values are deemed to be categorized as Level 2. Other total debt is primarily attributable to credit facilities borrowings where the carrying value reported in the balance approximates its fair value.

Convertible debt derivative: The fair value for the convertible debt conversion liability is based on valuation models in which significant inputs are observable in active markets. The fair values are deemed to be categorized as Level 2.