Financial Instruments and Fair Value

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value

Financial Instruments and Fair Value

Financial Instruments Disclosed at Fair Value

The following tables provide a summary of the significant financial instruments that are disclosed at fair value on a recurring basis as of September 30, 2024 and December 31, 2023:

	Fair Value Measurements at September 30, 2024
(in millions)	Level 1		Level 2		Level 3		Total
Term Loan(1)	$	486.5	$	—	$	—	$	486.5
Convertible Notes(2)	—		953.6		—		953.6
Equipment financings(3)	—		—		49.2		49.2
Mortgage(3)	—		—		61.1		61.1
Total	$	486.5	$	953.6	$	110.3	$	1,550.4

	Fair Value Measurements at December 31, 2023
(in millions)	Level 1		Level 2		Level 3		Total
Term Loan(1)	$	490.2	$	—	$	—	$	490.2
Convertible Notes(2)	—		928.7		—		928.7
Equipment financings(3)	—		—		59.3		59.3
Mortgage(3)	—		—		62.6		62.6
Total	$	490.2	$	928.7	$	121.9	$	1,540.8

(1) Fair value was determined using quoted market prices.

(2) Fair value was determined using market prices obtained from third-party pricing sources.

(3) Fair value approximates carrying value and was determined using the cost basis.

Assets Measured at Fair Value on a Recurring Basis

The following tables provide a summary of assets that are measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023:

	Fair Value Measurements at September 30, 2024
(in millions)	Level 1		Level 2		Level 3		Total
Cash(1)	$	109.1	$	—	$	—	$	109.1
Money market mutual funds(1)	686.5		—		—		686.5
Term deposits(1)	—		107.0		—		107.0
Interest rate swaps(2)	—		9.4		—		9.4
Debt securities(3)	—		—		4.7		4.7
Other investments(3)	—		—		—		—
Total assets	$	795.6	$	116.4	$	4.7	$	916.7

	Fair Value Measurements at December 31, 2023
(in millions)	Level 1		Level 2		Level 3		Total
Cash(1)	$	103.7	$	—	$	—	$	103.7
Money market mutual funds(1)	547.0		—		—		547.0
Term deposits(1)	—		53.5		—		53.5
Interest rate swaps(2)	—		22.8		—		22.8
Debt securities(3)	—		—		4.7		4.7
Other investments(3)	—		—		3.8		3.8
Total assets	$	650.7	$	76.3	$	8.5	$	735.5

(1) Cash and cash equivalents are carried at face amounts, which approximate their fair values.

(2) Fair value represents the estimated amounts the Company would receive or pay to terminate the contracts and is determined using industry standard valuation models and market-based observable inputs, including credit risk and interest rate yield curves. The fair value of the swaps is included in other assets on the consolidated balance sheets.

(3) Fair value is determined using industry standard valuation models and market-based unobservable inputs, including credit spread and risk free rate ranging from 3.8% to 5.6%.

Judgement is involved in estimating inputs, such as discount rates, used in Level 3 fair value measurements. Changes to these inputs can have a significant effect on fair value measurements and amounts that could be realized. There were no changes in the fair values of the Level 3 debt securities during the three and nine months ended September 30, 2024 or the three and nine months ended September 30, 2023.

Below is a reconciliation of changes in fair value of other investments for both the three and nine months ended September 30, 2024. There were no changes in the fair value of other investments during the three and nine months ended September 30, 2023.

(in millions)	Three Months Ended September 30, 2024		Nine Months Ended September 30, 2024
Balance at beginning of period	$	2.0	$	3.8
Unrealized loss included in other expense, net	(2.0)		(3.8)
Balance at the end of period	$	—	$	—

Assets Measured at Fair Value on a Non-Recurring Basis

The total carrying value of the Company’s investments in equity securities without readily determinable fair values was $9.9 million and $9.7 million as of September 30, 2024 and December 31, 2023, respectively, and was included within other assets on the consolidated balance sheets. These investments are carried at cost less impairment, if any. If an observable price change in orderly transactions for the identical or similar investment in the same issuer is identified, the investments are measured at fair value as of the date that the observable transaction occurred and categorized as Level 2 in the fair value hierarchy. In response to the occurrence of an observable transaction in September 2024, $2.1 million of the September 30, 2024 carrying value was measured at fair value. As of both September 30, 2024 and December 31, 2023 cumulative gains were $0.8 million.