Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v3.24.2
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2024
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
June 30, 2024
 December 31, 2023
Level 1 Level 2 Total Level 1 Level 2 Total
(in thousands)
Assets:
Cash equivalents $ 963,670  $ —  $ 963,670  $ 580,126  $ —  $ 580,126 
Interest rate swaps $ —  $ 42,983  $ 42,983  $ —  $ 39,232  $ 39,232 

Cash equivalents consist of money market funds. Fair values for cash equivalents are based on quoted prices in an active market. The fair value for our interest rate swaps are based upon inputs corroborated by observable market data with similar tenors.
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
June 30, 2024 December 31, 2023
Level 2
(in thousands)
6.5% Senior Secured Notes due 2027 $ 1,211,256  $ 1,222,608 
3.75% Senior Secured Notes due 2028 $ 466,535  $ 469,515 
4.875% Senior Notes due 2024 $ 573,223  $ 570,412 
5.625% Senior Notes due 2026 $ 296,802  $ 297,606 
4.75% Senior Notes due 2027 $ 911,155  $ 913,653 
2.0% Convertible Senior Notes due 2025 $ 413,808  $ 423,668 
3.125% Convertible Senior Notes due 2029 $ 1,113,350  $ 1,136,160 
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
For the six months ended June 30, 2024, we recorded a gain related to an investment in a nonconsolidated affiliate of $31.8 million as well as a gain related to a warrant on the same investment in a nonconsolidated affiliate of $32.6 million, as a component of other income, net. To calculate the gain on the investment, we remeasured the investment to fair value of $142.2 million using an observable price from orderly transactions for a similar investment of the same issuer. We remeasured the warrant to fair value of $52.6 million using an option pricing model.
For the six months ended June 30, 2024, we also recorded a gain related to an investment in a nonconsolidated affiliate of $24.4 million, as a component of other income, net. The gain was related to the acquisition of a controlling interest in a concert business, which was previously accounted for as an equity-method investment. To calculate the gain, we remeasured the investment to fair value of $35.9 million using the income approach method.
The key inputs in these fair value measurements include a future cash flow projection, including revenue, profit margins, and adjustment related to discount for lack of marketability. The key inputs used for these non-recurring fair value measurements are considered Level 3 inputs.
For the six months ended June 30, 2023, there were no significant non-recurring fair value measurements.