XML 32 R20.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:
•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
Our population of assets and liabilities subject to fair value measurements at June 30, 2024 was as follows:
Fair
Value		Level 1Level 2Level 3
Assets:
Equity securities$20.0 $— $— $20.0 
Debt securities12.1 — — 12.1 
Foreign currency forward contracts0.4 — 0.4 — 
Cross-currency swaps2.6 — 2.6 — 
Interest rate swaps1.1 — 1.1 — 
Total assets36.2 — 4.1 32.1 
Liabilities:
Foreign currency forward contracts0.1 — 0.1 — 
Cross-currency swaps2.6 — 2.6 — 
Interest rate swaps0.1 — 0.1 — 
Total liabilities$2.8 $— $2.8 $— 
Our population of assets and liabilities subject to fair value measurements at December 31, 2023 was as follows:
Fair
Value		Level 1Level 2Level 3
Assets:
Cross-currency swaps$2.5 $— $2.5 $— 
Interest rate swaps0.8 — 0.8 — 
Total assets3.3 — 3.3 — 
Liabilities:
Foreign currency forward exchange contracts1.6 — 1.6 — 
Cross-currency swaps6.7 — 6.7 — 
Interest rate swaps1.9 — 1.9 — 
Total liabilities$10.2 $— $10.2 $— 
Our foreign currency forward contracts, cross-currency swaps and interest rate swaps are valued using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present value amount. Further details regarding our derivative instruments are discussed in Note 10.
On February 21, 2024, the Company acquired certain investment securities in Brain Corp, a privately held autonomous technology company located in San Diego, California. The investment will drive the development and adoption of Brain Corp's next generation of robotic and AI technologies.
The investment securities include $12.1 million of redeemable convertible preferred stock, accounted for as available-for-sale debt instruments. The investment securities also include $12.2 million of non-redeemable convertible preferred stock and $7.8 million of warrants, accounted for as equity instruments under the elected measurement alternative.
The equity and debt securities were recorded at closing at their allocated fair values. For equity instruments, the carrying amount will be adjusted to fair value through net income each period based upon observable transactions for identical or similar investments of the same issuer and monitored for impairment. For debt instruments, the carrying amount will be adjusted to fair value each period through other comprehensive income. The securities will be measured to fair value based on Level 3 inputs. As of June 30, 2024, the total carrying value of our equity and debt instruments was $20.0 million and $12.1 million, respectively, which is recorded in other assets on the consolidated balance sheet. The debt instruments will mature on February 21,
2029. There have been no remeasurements of the equity securities as of June 30, 2024. Fair value adjustments for debt securities were not material as of June 30, 2024.
The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, other current assets, accounts payable and other current liabilities approximate fair value due to their short-term nature.
The fair value and carrying value of total debt, including current portion, was $215.6 million and $213.4 million, respectively, as of June 30, 2024. The fair value and carrying value of total debt, including current portion, was $198.2 million and $200.6 million, respectively, as of December 31, 2023. The fair value was estimated using Level 2 inputs based on the borrowing rates currently available to us for bank loans with similar terms and remaining maturities.