Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements Fair Value Measurements

v3.19.1
Fair Value Measurements Fair Value Measurements
3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Disclosures
7. FAIR VALUE MEASUREMENTS
The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs derived from observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.
As of March 31, 2019, the Company’s financial assets and liabilities that are measured at fair value on a recurring basis were as follows (in thousands):
 
Level 1
 
Level 2
 
Level 3
ASSETS
 
 
 
 
 
Cash, cash equivalents, restricted cash and restricted cash equivalents
$
144,144

 
$

 
$

Marketable securities(1)
33,384

 

 

Construction reserve funds
3,908

 

 

______________________
(1)
Marketable security gains (losses), net include unrealized gains of $3.1 million and unrealized losses of $3.8 million for the three months ended March 31, 2019 and 2018, respectively, related to marketable security positions held by the Company as of March 31, 2019.
As of March 31, 2019, the estimated fair values of the Company’s other financial assets and liabilities were as follows (in thousands):
 
 
 
Estimated Fair Value
 
Carrying
Amount
 
Level 1
 
Level 2
 
Level 3
ASSETS
 
 
 
 
 
 
 
Notes receivable from third parties (included in other receivables and other assets)
$
2,027

 
$

 
$
2,020

 
$

Investments, at cost, in 50% or less owned companies (included in other assets)
4,300

 
see below
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
Long-term debt, including current portion(1)
$
323,611

 
$

 
$
335,144

 
$

______________________
(1)
The estimated fair value includes the embedded conversion options on the Company’s 3.0% Convertible Senior Notes and 3.25% Convertible Senior Notes.
The fair value of the Company’s long-term debt and notes receivable from third parties was estimated based upon quoted market prices or by using discounted cash flow analyses based on estimated current rates for similar types of arrangements. It was not practicable to estimate the fair value of certain of the Company’s investments, at cost, in 50% or less owned companies because of the lack of quoted market prices and the inability to estimate fair value without incurring excessive costs. Considerable judgment was required in developing certain of the estimates of fair value and, accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange.