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Note 10 - Fair Value Measurement
 9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

10.  Fair Value Measurement

The following tables summarize significant assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value levels (in thousands):

  

Fair Value Measurement at Reporting Date Using

 

September 30, 2020

 

Level 1

  

Level 2

  

Level 3

  

Total

 

Cash equivalents

                

Money market funds

 $78,981  $—  $—  $78,981 

Other current assets

                

Commodity swap

  —   209   —   209 

Other noncurrent assets

                

Restricted cash

  1,512   —   —   1,512 

Total assets

 $80,493  $209  $—  $80,702 

Accrued and other current liabilities

                

Interest rate swap

 $—  $8,353  $—  $8,353 

Total liabilities

 $—  $8,353  $—  $8,353 

 

December 31, 2019

                

Cash equivalents

                

Money market funds

 $94,696  $—  $—  $94,696 

Other noncurrent assets

                

Restricted cash

  5,835   —   —   5,835 

Total assets

 $100,531  $—  $—  $100,531 

Accrued and other current liabilities

                

Interest rate swap

 $—  $4,603  $—  $4,603 

Total liabilities

 $—  $4,603  $—  $4,603 

 

September 30, 2019

                

Cash equivalents

                

Money market funds

 $68,579  $—  $—  $68,579 

Other noncurrent assets

                

Restricted cash

  5,658   —   —   5,658 

Total assets

 $74,237  $—  $—  $74,237 

Accrued and other current liabilities

                

Interest rate swap

 $—  $5,564  $—  $5,564 

Total liabilities

 $—  $5,564  $—  $5,564 

 

Interest Rate Swaps

In connection with the Third Amended and Restated Credit Agreement (as discussed further in Note 14) we entered into two interest rate swaps designated as cash flow hedges with an effective date of May 2018. The two cash flow hedges had a combined initial notional amount of $150.0 million and mature in May 2023. The interest rate swaps are designed to convert the interest rate on the term loan from a variable interest rate of LIBOR plus an applicable margin to a fixed rate of 2.76% plus the same applicable margin. The interest rate swap is measured at fair value on the consolidated balance sheets using the income approach, which discounts the future net cash settlements expected under the derivative contracts to a present value. These valuations primarily utilize indirectly observable inputs, including contractual terms, interest rates and yield curves observable at commonly quoted intervals.

Other Assets and Liabilities

The carrying values and estimated fair values of financial instruments that are not required to be recorded at fair value in the condensed consolidated balance sheets were as follows:

   

September 30, 2020

  

December 31, 2019

  

September 30, 2019

 

(in thousands)

Fair Value Hierarchy

 

Carrying Value

  

Fair Value

  

Carrying Value

  

Fair Value

  

Carrying Value

  

Fair Value

 

Assets:

                         

Held-to-maturity marketable securities (1)

Level 1

 $5,700  $5,696  $32,799  $32,792  $47,918  $47,856 

Liabilities (including current maturities):

                         

2.75% Convertible Notes (2),(3)

Level 2

 $198,606   184,000  $193,696  $249,895  $—  $— 

Credit Agreement - term loan (2)

Level 3

  133,125   135,046   138,750   139,042   140,625   141,634 

Credit Agreement - revolving credit facility (2)

Level 3

  75,000   76,180   25,000   25,043   250,000   251,986 

(1) All marketable securities were classified as held-to-maturity and consisted of U.S. Government and agency obligations as of September 30, 2020, December 31, 2019 and September 30, 2019.

(2) The fair value of the 2.75% Convertible Notes is based on the median price of the notes in an active market as of September 30, 2020 and December 31, 2019. The fair value of the Credit Agreement is based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk. See Note 14 for definitions of, and more information about, the Credit Agreement and 2.75% Convertible Notes. 

(3) Excluded from carrying value is $31.4 million and $36.3 million debt discount of as of September 30, 2020 and December 31, 2019, respectively, related to the 2.75% Convertible Notes (see Note 14).

 

As disclosed in Note 4, we recorded fair value adjustments related to nonfinancial assets measured at fair value on a nonrecurring basis during the three and nine months ended September 30, 2020. During the three and nine months ended September 30, 2020, we did not record any fair value adjustments related to nonfinancial liabilities measured at fair value on a nonrecurring basis. During the three and nine months ended September 30, 2019, we did not record any fair value adjustments related to nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.