Fair Value Measurements

3 Months Ended

Mar. 31, 2017

(10) Fair Value Measurements

The fair value hierarchy established by ASC 820, Fair Value Measurements, prioritizes the use of inputs used in valuation techniques into the following three levels:

Level 1 inputs are observable quoted prices in active markets for identical assets or liabilities

Level 2 inputs are observable, either directly or indirectly, but are not Level 1 inputs

Level 3 inputs are unobservable

The following table presents, by fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis, as of March 31, 2017 and December 31, 2016:



	As of March 31, 2017								As of December 31, 2016
	Fair Value Hierarchy								Fair Value Hierarchy
(in thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Cash and cash equivalents (a)	$	104,817	$	104,817	$	—	$	—	$	146,103	$	146,103	$	—	$	—
Restricted cash (a)		60,158		60,158		—		—		50,504		50,504		—		—
Investments in lieu of retainage (b)		53,852		50,317		3,535		—		51,266		46,855		4,411		—
Total	$	218,827	$	215,292	$	3,535	$	—	$	247,873	$	243,462	$	4,411	$	—

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(a)Includes money market funds with original maturity dates of three months or less.

(b)Investments in lieu of customer retainage are classified as accounts receivable and are comprised of money market funds and municipal bonds, the majority of which are rated Aa3 or better. The fair values of the money market funds are measured using quoted market prices; therefore, they are classified as Level 1 assets. The fair values of municipal bonds are measured using readily available pricing sources for comparable instruments; therefore, they are classified as Level 2 assets.

The Company did not have material transfers between Levels 1 and 2 during the three months ended March 31, 2017 or 2016.

The carrying values of receivables, payables and other amounts arising out of normal contract activities, including retainage, which may be settled beyond one year, are estimated to approximate fair value. Of the Company’s long-term debt, the fair value of the 2010 Senior Notes as of March 31, 2017 and December 31, 2016 was $304.0 million and $302.6 million, respectively, and the fair value of the Convertible Notes was $249.2 million and $228.4 million as of March 31, 2017 and December 31, 2016, respectively. The fair values were determined using Level 1 inputs, specifically current observable market prices. The reported value of the Company’s remaining long-term debt at March 31, 2017 and December 31, 2016 approximates fair value.

- 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.

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