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Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of financial instruments has been estimated by the Company using available market information as of March 31, 2025 and December 31, 2024, and valuation methodologies considered appropriate. The estimates presented in the table below are not necessarily indicative of amounts the Company could realize in a current market exchange (in millions):

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

 

Carrying

 

 

Estimated
Fair

 

 

Carrying

 

 

Estimated
Fair

 

 

 

Amount

 

 

Value

 

 

Amount

 

 

Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

431

 

 

$

431

 

 

$

37

 

 

$

37

 

Investments in equity securities

 

 

65

 

 

 

65

 

 

 

69

 

 

 

69

 

Available-for-sale debt securities

 

 

198

 

 

 

198

 

 

 

192

 

 

 

192

 

Trading securities

 

 

5

 

 

 

5

 

 

 

5

 

 

 

5

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

8% Senior Secured Notes due 2027

 

 

696

 

 

 

693

 

 

 

696

 

 

 

700

 

5⅝% Senior Secured Notes due 2027

 

 

1,726

 

 

 

1,682

 

 

 

1,722

 

 

 

1,686

 

6⅞% Senior Notes due 2028

 

 

622

 

 

 

412

 

 

 

622

 

 

 

457

 

6% Senior Secured Notes due 2029

 

 

627

 

 

 

573

 

 

 

626

 

 

 

577

 

5¼% Senior Secured Notes due 2030

 

 

1,471

 

 

 

1,266

 

 

 

1,468

 

 

 

1,261

 

4¾% Senior Secured Notes due 2031

 

 

1,055

 

 

 

837

 

 

 

1,054

 

 

 

822

 

10⅞% Senior Secured Notes due 2032

 

 

2,212

 

 

 

2,198

 

 

 

2,212

 

 

 

2,299

 

6⅞% Junior-Priority Secured Notes due 2029

 

 

1,179

 

 

 

810

 

 

 

1,175

 

 

 

940

 

6⅛% Junior-Priority Secured Notes due 2030

 

 

1,177

 

 

 

751

 

 

 

1,175

 

 

 

842

 

ABL Facility and other debt

 

 

227

 

 

 

227

 

 

 

359

 

 

 

359

 

 

The carrying value of the Company’s long-term debt in the above table is presented net of unamortized deferred debt issuance costs. The estimated fair value is determined using the methodologies discussed below in accordance with accounting standards related to the determination of fair value based on the U.S. GAAP fair value hierarchy as discussed in Note 8 - Fair Value. The estimated fair value for financial instruments with a fair value that does not equal its carrying value is considered a Level 1 valuation. The Company utilizes the market approach and obtains indicative pricing through publicly available subscription services such as Bloomberg to determine fair values where relevant.

Cash and cash equivalents. The carrying amount approximates fair value due to the short-term maturity of these instruments (less than three months).

Investments in equity securities. Estimated fair value is based on closing price as quoted in public markets.

Available-for-sale debt securities. Estimated fair value is based on closing price as quoted in public markets or other various valuation techniques.

Trading securities. Estimated fair value is based on closing price as quoted in public markets.

Senior Notes, Senior Secured Notes and Junior-Priority Secured Notes. Estimated fair value is based on the closing market price for these notes.

ABL Facility and other debt. The carrying amount of the ABL Facility and all other debt approximates fair value due to the nature of these obligations.