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Fair Value
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value

NOTE 6 – FAIR VALUE

The Company follows the authoritative guidance for fair value measurement and the fair value option for financial assets and financial liabilities. The Company carries its financial instruments at fair value with the exception of its long-term debt. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

 

Level 1

Quoted prices in active markets for identical assets.

 

 

Level 2

Observable market-based inputs or unobservable inputs that are corroborated by market data.

 

 

Level 3

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

When applying fair value principles in the valuation of assets, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company calculates the fair value of its Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs. There were no significant transfers into or out of Level 1 or Level 2 that occurred between December 31, 2023 and June 30, 2024.

The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of June 30, 2024 (in thousands):

 

 

 

Fair Value

 

 

Quoted
Prices in
Active Markets
for Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper - debt securities (1)

 

$

11,137

 

 

$

—

 

 

$

11,137

 

 

$

—

 

Corporate bonds and notes - debt securities (2)

 

 

16,650

 

 

 

—

 

 

 

16,650

 

 

 

—

 

Treasury and agency notes and bills - debt securities (1)

 

 

3,479

 

 

 

—

 

 

 

3,479

 

 

 

—

 

Money market funds - equity securities (3)

 

 

4,200

 

 

 

4,200

 

 

 

—

 

 

 

—

 

Total Assets

 

$

35,466

 

 

$

4,200

 

 

$

31,266

 

 

$

—

 

 

(1)
Reported as AFS debt securities in the Condensed Consolidated Balance Sheet as these were purchased with original maturities of more than three months at date of purchase; otherwise reported as cash and cash equivalents.
(2)
Reported as AFS debt securities in the Condensed Consolidated Balance Sheet.
(3)
Reported as cash and cash equivalents in the Condensed Consolidated Balance Sheet.

The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of December 31, 2023 (in thousands):

 

 

 

Fair Value

 

 

Quoted
Prices in
Active Markets
for Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper - debt securities (1)

 

$

12,422

 

 

$

—

 

 

$

12,422

 

 

$

—

 

Treasury and agency notes and bills - debt securities (1)

 

 

10,745

 

 

 

—

 

 

 

10,745

 

 

 

—

 

Corporate bonds and notes - debt securities (2)

 

 

5,845

 

 

 

—

 

 

 

5,845

 

 

 

—

 

Money market funds - equity securities (3)

 

 

5,778

 

 

 

5,778

 

 

 

—

 

 

 

—

 

Total Assets

 

$

34,790

 

 

$

5,778

 

 

$

29,012

 

 

$

—

 

 

(1)
Reported as AFS debt securities in the Condensed Consolidated Balance Sheet as these were purchased with original maturities of more than three months at date of purchase; otherwise reported as cash and cash equivalents.
(2)
Reported as AFS debt securities in the Condensed Consolidated Balance Sheet.
(3)
Reported as cash and cash equivalents in the Condensed Consolidated Balance Sheet.

 

Financial Instruments Not Recorded at Fair Value

The Company’s long-term debt is carried at amortized cost and is measured at fair value on a quarterly basis for disclosure purposes. The carrying amounts and estimated fair values are as follows (in thousands):

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

2021 Refinanced Term Loan B (1)

 

 

—

 

 

 

—

 

 

 

585,695

 

 

 

584,231

 

2024 Term Loan B (1)

 

 

535,610

 

 

 

534,940

 

 

 

—

 

 

 

—

 

Total long-term debt, net

 

$

535,610

 

 

$

534,940

 

 

$

585,695

 

 

$

584,231

 

(1) Carrying amounts of long-term debt are net of unamortized debt discount and issuance costs of $13.5 million and $15.6 million as of June 30, 2024 and December 31, 2023, respectively. See “Note 8 – Debt” for additional information.

If reported at fair value in the Condensed Consolidated Balance Sheets, the Company’s debt would be classified within Level 2 of the fair value hierarchy. The fair value of the debt was estimated based on the quoted market prices for the same or similar issues.