Note 7 - Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Fair Value Disclosures [Text Block]

7. Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our assets and liabilities measured at fair value are based on valuation techniques which consider prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. These valuation methods are based on either quoted market prices (Level 1) or inputs, other than quoted prices in active markets, that are observable either directly or indirectly (Level 2). The following are assets and liabilities measured at fair value on a recurring basis at June 30, 2022 (in millions):

	Asset/(Liability) Balance
	June 30, 2022		December 31, 2021			Input Level
Trading investments	$	24.3	$	26.0			1
Interest rate swap	$	-	$	6.3			2
Senior notes, net of unamortized discount and debt issuance costs	$	-	$	(356.0	)		2

The fair value of trading investments has been measured using the market approach (Level 1) and reflect quoted market prices. The fair values of the interest rate swap and corresponding senior notes have been measured using the income approach (Level 2), which include relevant interest rate curve inputs. Trading investments are classified in other assets in our Condensed Consolidated Balance Sheets. The interest rate swap and senior notes are classified in our Condensed Consolidated Balance Sheets in prepaid expenses and other and current portion of long-term debt, respectively.

Financial Instruments

The carrying amount of our remaining senior notes not measured at fair value on a recurring basis was $1.30 billion and $945.2 million at June 30, 2022 and December 31, 2021, respectively. The estimated fair value of these liabilities using the income approach (Level 2), based on their net present value, discounted at our current borrowing rate, was $1.30 billion and $1.04 billion at June 30, 2022 and December 31, 2021, respectively.

The carrying amounts of all other instruments at June 30, 2022, approximate their fair value due to the short maturity of these instruments.