Quarterly report [Sections 13 or 15(d)]

Fair Value Measurements

v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair value measurements

NOTE 11. FAIR VALUE MEASUREMENTS

Recurring Measurements

Our liabilities measured at fair value on a recurring basis consist of the following:

 

 

Fair Value Measurements Using

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

March 31, 2025:

 

 

 

 

 

 

 

 

 

Liabilities — Munger make-whole provision

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024:

 

 

 

 

 

 

 

 

 

Liabilities — Munger make-whole provision

 

$

—

 

 

$

—

 

 

$

8.6

 

 

The fair value of the Munger make-whole provision was estimated using a Black-Scholes model as of December 31, 2024. The significant unobservable inputs used in the fair value measurement are the risk-free rate and volatility. As of March 31, 2025, the remaining Munger make-whole provision had been settled.

The following is a reconciliation of our recurring Level 3 fair value measurements:

 

 

Three Months Ended March 31,

 

 

2025

 

 

2024

 

 

Net asset (liability) balance at beginning of period

 

$

(8.6

)

 

$

15.9

 

 

Change in fair value of Level 3 fair value measurements

 

 

3.7

 

 

 

1.2

 

 

Munger liability settled in cash

 

 

4.9

 

 

 

—

 

 

Net asset (liability) balance at end of period

 

$

—

 

 

$

17.1

 

 

 

Financial Instruments

The estimated fair values of our financial instruments have been determined at discrete points in time based on relevant market information. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, certain investments, accounts payable, accrued expenses and long-term debt.

The carrying amounts of our financial instruments other than long-term debt approximate fair value because of the short-term nature of the items. The carrying amounts of our floating rate debt approximate fair value due to their variable interest rates. The fair value of our fixed rate debt, classified as Level 2 in the fair value hierarchy, also approximated its carrying value.