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FAIR VALUE OF FINANCIAL INSTRUMENTS
6 Months Ended
Jun. 30, 2020
FAIR VALUE OF FINANCIAL INSTRUMENTS  
FAIR VALUE OF FINANCIAL INSTRUMENTS

9.          FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company values its financial instruments based on the fair value hierarchy of valuation techniques for fair value measurements. Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. If the technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.

The Company uses Level 1 inputs for the fair values of its cash, cash equivalents and restricted cash, and Level 2 inputs for its variable and fixed rate debt. The fair values of cash, cash equivalents and restricted cash, and variable rate debt approximate their carrying values due to the nature of the instruments. The fair value of fixed rate debt is calculated based upon interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements.

The carrying value and fair value of the Company’s financial instruments as of June 30, 2020 and December 31, 2019 are as follows:

Quoted Prices in

Significant

Significant

Total

Active Markets

Observable 

Unobservable 

    

    Carrying Value    

    

        Total         

    

(Level 1)

    

Inputs (Level 2)

    

Inputs (Level 3)

(In millions)

June 30, 2020

Fair Value Measurements at June 30, 2020

Cash and cash equivalents

$

19.5

$

19.5

$

19.5

$

$

Restricted cash

$

3.0

$

3.0

$

3.0

$

$

Variable rate debt

$

178.0

$

178.0

$

$

178.0

$

Fixed rate debt

$

712.0

$

708.9

$

$

708.9

$

(In millions)

    

December 31, 2019

               Fair Value Measurements at December 31, 2019           

Cash and cash equivalents

$

21.2

$

21.2

  

$

21.2

$

$

Restricted cash

$

7.2

$

7.2

$

7.2

$

$

Variable rate debt

$

379.1

$

379.1

$

$

379.1

$

Fixed rate debt

$

579.3

$

585.9

$

$

585.9

$