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Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements

NOTE 10. — FAIR VALUE MEASUREMENTS

Debt Instruments

As of September 30, 2024 and December 31, 2023, the carrying value of the borrowings under the Revolving Credit Facility and the Term Loan approximated fair value. As of September 30, 2024 and December 31, 2023, the fair value of the borrowings under our Senior Unsecured Notes was $614.7 million and $590.9 million, respectively. The fair value of the borrowings outstanding as of September 30, 2024 and December 31, 2023 was determined using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration, risk profile and borrowings outstanding, which are based on unobservable inputs within Level 3 of the Fair Value Hierarchy.

Derivative Instruments

We use interest rate swap agreements to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis of the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. As of September 30, 2024, we had assessed the overall valuation of our derivative positions and determined that derivative valuations in their entirety are classified in Level 2 of the Fair Value Hierarchy. The fair value of these liability instruments was $4.0 million and is included in accounts payable and accrued liabilities, net on our consolidated balance sheet as of September 30, 2024.

Supplemental Retirement Plan

We have mutual fund assets that are measured at fair value on a recurring basis using Level 1 inputs. We have a Supplemental Retirement Plan for executives. The amounts held in trust under the Supplemental Retirement Plan using Level 2 inputs may be used to satisfy claims of general creditors in the event of our or any of our subsidiaries’ bankruptcy. We have liability to the executives participating in the Supplemental Retirement Plan for the participant account balances equal to the aggregate of the amount invested at the executives’ direction and the income earned in such mutual funds.

The following summarizes as of September 30, 2024, our assets and liabilities measured at fair value on a recurring basis by level within the Fair Value Hierarchy (in thousands):

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

1,890

 

 

$

—

 

 

$

—

 

 

$

1,890

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation

 

$

—

 

 

$

1,890

 

 

$

—

 

 

$

1,890

 

 

The following summarizes as of December 31, 2023, our assets and liabilities measured at fair value on a recurring basis by level within the Fair Value Hierarchy (in thousands):

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

1,504

 

 

$

—

 

 

$

—

 

 

$

1,504

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation

 

$

—

 

 

$

1,504

 

 

$

—

 

 

$

1,504

 

 

Real Estate Assets

We have certain real estate assets that are measured at fair value on a non-recurring basis using Level 3 inputs, totaling $0.2 million and $0.6 million as of September 30, 2024 and December 31, 2023, respectively, where impairment charges have been recorded. Due to the subjectivity inherent in the internal valuation techniques used in estimating fair value, the amounts realized from the sale of such assets may vary significantly from these estimates.