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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Financial Instruments Measured at Fair Value

The financial instruments measured at fair value in the accompanying Condensed Consolidated Balance Sheets on a recurring basis consist of the following:

		As of																As of
		March 31, 2019																December 31, 2018
(In thousands)		Level 1				Level 2				Level 3				Total				Level 1				Level 2				Level 3				Total
Assets:
Money market funds (1)		$	8,804			$	—			$	—			$	8,804			$	6,037			$	—			$	—			$	6,037
Investment in equity securities (2)		3,683				—				—				3,683				6,100				—				—				6,100
Total		$	12,487			$	—			$	—			$	12,487			$	12,137			$	—			$	—			$	12,137
Liabilities:
Financing derivatives: no hedging designation
Interest rate reset (3)		$	—			$	—			$	18,500			$	18,500			$	—			$	—			$	23,300			$	23,300
Change of control redemption (4)		—				—				3,500				3,500				—				—				2,800				2,800
Total		$	—			$	—			$	22,000			$	22,000			$	—			$	—			$	26,100			$	26,100

⁽¹⁾ Level 1 cash equivalents are invested in money market funds that are intended to maintain a stable net asset value of $1.00 per share by investing in liquid, high quality U.S. dollar-denominated money market instruments with maturities less than three months.

⁽²⁾ The Company's investment in common stock of an entity, which is included in other non-current assets, is valued using a market approach based on the quoted market price of the security. The Company sold a portion of its investment in an equity security during the three months ended March 31, 2019.

⁽³⁾ The fair value of the Company's interest rate reset derivative liability is determined using a with-and-without approach, using a standard binomial tree convertible bond model. The fair value estimate is determined using an estimate for the Company's credit rating, the premium attributable to the payment-in-kind feature of the Notes, and premium estimates for company-specific risk factors. The valuation is derived from techniques which utilize unobservable Level 3 inputs.

⁽⁴⁾ The fair value of the Company's change of control redemption derivative liability is determined using a probability adjusted binomial lattice model. The fair value estimate is determined using an estimate for the probability of change of control of the Company, risk-free rate, and remaining term of the redemption feature. These estimates represent Level 3 inputs within the fair value hierarchy.

Schedule of Changes in Level 3 Fair Valued Instruments

The following table presents the changes in the Company's Level 3 fair valued instruments for the three months ended March 31, 2019 and March 31, 2018, respectively:

(In thousands)		Financing Derivative Liabilities
Balance as of December 31, 2018		$	26,100
Total (gains) losses included in other income, net (1)		(4,100		)
Balance as of March 31, 2019		$	22,000

⁽¹⁾ Represents $4.8 million gain due to change in fair value of interest rate reset derivative liability, offset by $0.7 million loss due to change in fair value of change of control redemption derivative liability. All gains and losses were recorded in other income, net in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

(In thousands)		Financing Derivative Liabilities
Balance as of December 31, 2017		$	—
Issuances		12,940
Total (gains) losses included in other income, net (1)		2,180
Balance as of March 31, 2018		$	15,120

⁽¹⁾ Represents $0.1 million loss due to change in fair value of interest rate reset derivative liability, $2.0 million loss due to change in fair value of Notes Option liability, and $0.1 million loss due to change in fair value of change of control redemption derivative liability. All gains and losses were recorded in other income, net in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

Schedule of Valuation Techniques and Significant Unobservable Inputs For Level 3 Liabilities

The following table displays valuation techniques and the significant unobservable inputs for the Company's Level 3 liabilities measured at fair value on a recurring basis:

	Fair value measurements
	Significant valuation technique			Significant unobservable inputs			March 31, 2019		December 31, 2018
Interest rate reset derivative liability	Discounted cash flow			Discount rate			24.0%		25.0%
				Stock price			$20.25		$14.43
				Risk-free rate			2.2%		2.5%
				Volatility			37.1%		43.9%
				Term			2.79 years		3.04 years
Change of control redemption derivative liability	Option pricing model			Probability			0-10%		0-10%
				Risk-free rate			2.2%		2.5%

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
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Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
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