XML 31 R22.htm IDEA: XBRL DOCUMENT

Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Financial Instruments Disclosure [Abstract]

16. Fair Value Measurements

We use a fair value hierarchy, based on the relative objectivity of inputs used to measure fair value, with Level 1 representing inputs with the highest level of objectivity and Level 3 representing the lowest level of objectivity.

The fair values of cash and cash equivalents, restricted cash, short-term investments, grants and accounts receivable, due from related parties and trade and other payables approximate their carrying values due to the short-term nature of these instruments. The current portion of long-term debt has been included in the below table.

The fair value of our notes receivable from Next Bridge as of December 31, 2022 was classified at Level 3 in the fair value hierarchy. See Note 5 for further details.

The fair values of operating lease liabilities, and long-term debt would be classified at Level 3 in the fair value hierarchy, as each instrument is estimated based on unobservable inputs including discounted cash flows using the market rate, which is subject to similar risks and maturities with comparable financial instruments as at the reporting date.

Carrying values and fair values of financial instruments that were not carried at fair value are as follows:


	2023				2022
Financial liability	Carrying value		Fair value		Carrying value		Fair value
Funding obligation	$	982,912	$	982,912	$	180,705	$	85,411
Operating lease liabilities	$	7,426,520	$	9,782,069	$	4,342,157	$	5,666,940
Long-term debt	$	3,724,617	$	3,970,061	$	3,553,955	$	2,663,460

Nonrecurring Fair Value Measurements

In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis as required by ASC 820. For the year ended December 31, 2023, the carrying value of certain asset groups was remeasured to fair value on a nonrecurring basis as a result of our impairment assessment. The fair value of each asset group was calculated utilizing an income approach. The income approach uses a discounted cash flow model that requires various observable and non-observable inputs, the most significant of which is estimated income. We also considered measures of fair value using the market approach; however, limited observable market transactions or market information was available. As such, the income approach was used to maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The resulting estimate of fair value for each asset group using the income approach and the above Level 3 estimates was less than the corresponding carrying value for each

asset group, which resulted in an aggregate pre-tax impairment charge of $65.6 million. See Note 24, Realignment and Consolidation Plan, for further information. There were no other assets measured at fair value on a nonrecurring basis as of, or for the year ended, December 31, 2023 and 2022.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details