XML 25 R14.htm IDEA: XBRL DOCUMENT v3.22.1
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  The three levels of the fair value hierarchy are described below:
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 - Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, quoted prices or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring (at least annually) and nonrecurring basis by level within the fair value hierarchy (in thousands).
Fair value as of March 31, 2022
Level 1 (1)
Level 2 (2) 
Level 3  (3) 
Total
Assets:
Cash$998,986 $— $— $998,986 
Restricted cash35,315 — — 35,315 
Marketable securities38,646 — — 38,646 
Trade receivables — 80,673 — 80,673 
Derivative asset— 1,351 — 1,351 
Deferred consideration— — 23,261 23,261 
$1,072,947 $82,024 $23,261 $1,178,232 
Fair value as of December 31, 2021
Level 1 (1)
Level 2 (2) 
Level 3  (3) 
Total
Assets:
Cash$1,017,562 $— $— $1,017,562 
Restricted cash35,303 — — 35,303 
Marketable securities46,923 — — 46,923 
Trade receivables — 72,634 — 72,634 
Derivative asset— 987 — 987 
Deferred consideration— — 22,610 22,610 
$1,099,788 $73,621 $22,610 $1,196,019 
(1)Marketable securities of publicly quoted companies, consisting of investments, are valued using a market approach based upon unadjusted quoted prices in an active market obtained from securities exchanges.  
(2)The Company manages its exposure to fluctuation in diesel prices and foreign currency exchange rates through hedges. The Company’s derivative asset and liabilities are valued using pricing models with inputs derived from observable market data, including quoted prices in active markets. The Company’s provisional metal sales contracts, included in Trade and other receivables in the Condensed Consolidated Balance Sheets, are valued using inputs derived from observable market data, including quoted commodity forward prices. The inputs do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.
(3)Certain items of deferred consideration are included in Level 3, as certain assumptions used in the calculation of the fair value are not based on observable market data. Deferred consideration is included in Other non-current assets in the Condensed Consolidated Balance Sheets.
The following table reconciles the beginning and ending balances for financial instruments that are recognized at fair value using significant unobservable inputs (Level 3) in the condensed consolidated financial statements (in thousands):
Three Months Ended March 31,
20222021
Balance as of January 1$22,610 $21,460 
Revaluations651 124 
Balance as of March 31
$23,261 $21,584 
Fair values of financial assets and liabilities not already measured at fair value 
The fair value of the 2019 Notes and Term Loan as compared to the carrying amounts were as follows (in thousands): 
March 31, 2022December 31, 2021
LevelCarrying amountFair valueCarrying amountFair value
2019 Notes (1) 
1$225,761 $319,700 $225,534 $286,207 
Term Loan (2)
2122,500 125,922 140,000 144,871 
Total borrowings$348,261 $445,622 $365,534 $431,078 
(1) The fair value disclosed for the Company's 2019 Notes is included in Level 1 as the basis of valuation uses a quoted price in an active market.
(2) The fair value disclosed for the Company's Term Loan is included in Level 2 as the fair value is determined by an independent third-party pricing source.