Fair value measurement

6 Months Ended

Jun. 30, 2022

Fair value measurement

Fair value measurement

12.    Fair value measurement

All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement or disclosure:

● Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at measurement date;

● Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and

● Level 3: Unobservable inputs for the asset or liability.

12.    Fair value measurement (continued)

		June 30, 2022				December 31, 2021
		Carrying				Carrying
	Category	amount		Fair value		amount		Fair value
Fair values disclosed:
Cash and cash equivalents	Level 1	$	367,289	$	367,289	$	326,113	$	326,113
Restricted cash	Level 1		164,371		164,371		1,036,339		1,036,339
Loans receivable	Level 2		11,749		11,678		7,267		7,267
Derivative financial assets
Deal contingent forward contract	Level 3		—		—		751		751
Forward currency contracts	Level 2		37		37		—		—
Derivative financial liabilities
Deal contingent forward contract	Level 3		—		—		2,005		2,005
Short-term debt	Level 2		8,637		8,637		6,147		6,147
Long-term debt
Senior unsecured notes (as defined in Note 17)
2016 Notes	Level 1		495,434		489,800		494,531		508,125
2021 USD Notes	Level 2		—		—		598,052		625,125
2021 CAD Notes	Level 2		—		—		332,337		339,100
Term loan	Level 2		91,989		92,348		92,821		93,226
Long-term revolver loans	Level 2		56,949		57,000		219,699		219,772

The carrying value of the Company’s cash and cash equivalents, restricted cash, trade and other receivables, advances against auction contracts, loan receivables maturing within a year, auction proceeds payable, trade and other payables, and short-term debt approximate their fair values due to their short terms to maturity. The fair value of the loan receivables with a maturity date greater than one year are determined by estimating discounted cash flows using market rates. The carrying values of the term loan and long-term revolver loan, before deduction of deferred debt issue costs, approximate their fair values as the interest rates on the loans is short-term in nature. The fair values of the senior unsecured notes are determined by reference to a quoted market price of the notes traded in an over-the-counter broker market.

The Company holds derivative financial assets and liabilities that are required to be measured at fair value on a recurring basis. The fair values of the deal contingent forward contracts were determined using a probability weighted mark to market valuation and observable Level 2 inputs, including foreign currency spot exchange rates, forward pricing curves, and an unobservable Level 3 input, the expected date of settlement. The change in the valuation of the derivatives due to the range of possible expected settlement dates was not significant to the financial statements. The fair value of the forward currency contracts are determined using observable Level 2 inputs, including foreign currency spot exchange rates and forward pricing curves. The fair value considers the credit risk of the Company and its counterparties.