XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Note 10 - Fair Value Measurements | 9 Months Ended
--- | ---
Sep. 30, 2022
Notes to Financial Statements |
Fair Value Disclosures [Text Block] | 10. FAIR VALUE MEASUREMENTS Financial Assets and Liabilities. The Company has estimated the fair values of its financial instruments as of September 30, 2022 using available market information or other appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the following fair value estimates are not necessarily indicative of the amounts the Company would realize in an actual market exchange. The carrying amounts, fair values and related fair value hierarchy levels of the Company’s financial assets and liabilities as of September 30, 2022 were as follows (in thousands):
|  | September 30, 2022
|  | Carrying |  |  | Fair |  | Fair Value
|  | Amount |  |  | Value |  | Hierarchy
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents: |  |  |  |  |  |  |  |  |
Money market investments |  | $ | 107,718 |  |  | $ | 107,718 |  | Level 1
Commercial paper |  | $ | 99,495 |  |  | $ | 99,346 |  | Level 2
Other noncurrent assets (including current portion): |  |  |  |  |  |  |  |  |
Interest rate swap asset |  | $ | 73,299 |  |  | $ | 73,299 |  | Level 2
Liabilities: |  |  |  |  |  |  |  |  |
Long-term debt (including current portion): |  |  |  |  |  |  |  |  |
Term loans |  | $ | 2,286,592 |  |  | $ | 2,252,293 |  | Level 2
Senior Notes |  | $ | 650,000 |  |  | $ | 503,750 |  | Level 2
Convertible Notes |  | $ | 920,000 |  |  | $ | 688,804 |  | Level 2
Other noncurrent liabilities: |  |  |  |  |  |  |  |  |
MBI Net Option |  | $ | 35,520 |  |  | $ | 35,520 |  | Level 3
Money market investments are held primarily in U.S. Treasury securities and registered money market funds and are valued using a market approach based on quoted market prices (level 1). Commercial paper is primarily held with high-quality companies and is valued using quoted market prices for investments similar to the commercial paper (level 2). Money market investments and commercial paper with original maturities of three months or less are included within cash and cash equivalents in the condensed consolidated balance sheets. Interest rate swaps are measured at fair value within the condensed consolidated balance sheets on a recurring basis, with fair value determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (level 2). The fair value of the term loans, Senior Notes and Convertible Notes are estimated based on market prices for similar instruments in active markets (level 2). The fair value of the MBI Net Option is measured using Monte Carlo simulations that use inputs considered unobservable and significant to the fair value measurement (level 3). The assumptions used to determine the fair value of the MBI Net Option consisted of the following:
|  | September 30, 2022 |  |  | December 31, 2021 |
|  | Cable One |  |  | MBI |  |  | Cable One |  |  | MBI |
Equity volatility |  |  | 37.0 | % |  |  | 31.0 | % |  |  | 30.0 | % |  |  | 30.0 | %
EBITDA volatility |  |  | 10.0 | % |  |  | 10.0 | % |  |  | 10.0 | % |  |  | 10.0 | %
EBITDA risk-adjusted discount rate |  |  | 8.5 | % |  |  | 10.0 | % |  |  | 5.0 | % |  |  | 6.5 | %
Cost of debt |  |  | 7.5 | % |  |  |  |  |  |  | 4.0 | % |  |  |  |
The Company regularly evaluates each of the assumptions used in establishing the fair value of the MBI Net Option. Significant changes in any of these assumptions could result in a significantly lower or higher fair value measurement. A change in one of these assumptions is not necessarily accompanied by a change in another assumption. Refer to note 5 for further information on the MBI Net Option. The carrying amounts of accounts receivable, accounts payable and other financial assets and liabilities approximate fair value because of the short-term nature of these instruments. Nonfinancial Assets and Liabilities. The Company’s nonfinancial assets, such as property, plant and equipment, intangible assets and goodwill, are not measured at fair value on a recurring basis. Assets acquired, including identifiable intangible assets and goodwill, and liabilities assumed in acquisitions are recorded at fair value on the respective acquisition dates, subject to potential future measurement period adjustments. Nonfinancial assets are subject to fair value adjustments when there is evidence that impairment may exist. No material impairments were recorded during the nine months ended September 30, 2022 or 2021.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration