Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v3.21.2
FAIR VALUE MEASUREMENTS
9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Recurring

The following table shows the fair value of our significant financial assets that are required to be measured at fair value on a recurring basis, which are classified on the consolidated balance sheets as cash and cash equivalents.

Estimated Fair Value
September 30, 2021
December 31, 2020
Level 1 Level 2 Total Level 1 Level 2 Total
(in thousands)
Assets:
    Cash equivalents $ 776,553  $ —  $ 776,553  $ 282,696  $ —  $ 282,696 

Our outstanding debt held by third-party financial institutions is carried at cost, adjusted for any discounts or debt issuance costs. Our debt is not publicly traded and the carrying amounts typically approximate fair value for debt that accrues interest at a variable rate, which are considered to be Level 2 inputs as defined in the FASB guidance.
The following table presents the estimated fair values of our senior secured notes, senior notes and convertible senior notes:
Estimated Fair Value at
September 30, 2021 December 31, 2020
Level 2
(in thousands)
6.5% Senior Secured Notes due 2027 $ 1,322,100  $ 1,340,688 
3.75% Senior Secured Notes due 2028 $ 497,860  $ — 
4.75% Senior Notes due 2027 $ 966,986  $ 970,872 
4.875% Senior Notes due 2024 $ 581,929  $ 581,480 
5.625% Senior Notes due 2026 $ 312,237  $ 307,785 
2.5% Convertible Senior Notes due 2023 $ 796,329  $ 720,764 
2.0% Convertible Senior Notes due 2025 $ 459,180  $ 425,172 

The estimated fair value of our third-party fixed-rate debt is based on quoted market prices in active markets for the same or similar debt, which are considered to be Level 2 inputs.
Non-recurring
The following table shows the fair value of our financial assets that have been adjusted to fair value on a non-recurring basis, which had a significant impact on our results of operations for the nine months ended September 30, 2020.
Fair Value Measurements Using
Description Fair Value Measurement Level 1 Level 2 Level 3 Loss (Gain)
(in thousands)
2020
Definite-lived intangible assets, net $ 7,390  $ —  $ —  $ 7,390  $ 15,264 

For the nine months ended September 30, 2021, there were no significant impairment charges. During the nine months ended September 30, 2020, we recorded impairment charges related to definite-lived intangible assets of $15.3 million as a component of depreciation and amortization primarily related to intangible assets for revenue-generating contracts and client/vendor relationships in the Concerts segment. It was determined that these assets were impaired since the most recent estimated undiscounted future cash flows associated with these assets were less than their carrying value, primarily as a result of the expected impacts from the global COVID-19 pandemic. These impairments were calculated using operating cash flows, which were discounted to approximate fair value. The key inputs in these calculations include future cash flow projections, including revenue profit margins, and, for the fair value computation, a discount rate. The key inputs used for these non-recurring fair value measurements are considered Level 3 inputs.