Note 10 - Fair Value Measurement

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Fair Value Disclosures [Text Block]

10.  Fair Value Measurement

The following tables summarize significant assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value levels (in thousands):

	Fair Value Measurement at Reporting Date Using
March 31, 2020	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	58,693	$	—	$	—	$	58,693
Other noncurrent assets
Restricted cash		4,881		—		—		4,881
Total assets	$	63,574	$	—	$	—	$	63,574
Accrued and other current liabilities
Interest rate swap	$	—	$	8,890	$	—	$	8,890
Total liabilities	$	—	$	8,890	$	—	$	8,890

December 31, 2019
Cash equivalents
Money market funds	$	94,696	$	—	$	—	$	94,696
Other noncurrent assets
Restricted cash		5,835		—		—		5,835
Total assets	$	100,531	$	—	$	—	$	100,531
Accrued and other current liabilities
Interest rate swap	$	—	$	4,603	$	—	$	4,603
Total liabilities	$	—	$	4,603	$	—	$	4,603

March 31, 2019
Cash equivalents
Money market funds	$	36,159	$	—	$	—	$	36,159
Other noncurrent assets
Restricted cash		5,825		—		—		5,825
Total assets	$	41,984	$	—	$	—	$	41,984
Accrued and other current liabilities
Interest rate swap	$	—	$	2,530	$	—	$	2,530
Total liabilities	$	—	$	2,530	$	—	$	2,530

Interest Rate Swaps

In connection with the Third Amended and Restated Credit Agreement (as discussed further in Note 14) we entered into two interest rate swaps designated as cash flow hedges with an effective date of May 2018. The two cash flow hedges had a combined initial notional amount of $150.0 million and mature in May 2023. The interest rate swaps are designed to convert the interest rate on the term loan from a variable interest rate of LIBOR plus an applicable margin to a fixed rate of 2.76% plus the same applicable margin. The interest rate swap is measured at fair value on the consolidated balance sheets using the income approach, which discounts the future net cash settlements expected under the derivative contracts to a present value. These valuations primarily utilize indirectly observable inputs, including contractual terms, interest rates and yield curves observable at commonly quoted intervals.

Other Assets and Liabilities

The carrying values and estimated fair values of financial instruments that are not required to be recorded at fair value in the condensed consolidated balance sheets were as follows:

		March 31, 2020				December 31, 2019				March 31, 2019
(in thousands)	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Held-to-maturity marketable securities (1)	Level 1	$	5,000	$	5,006	$	32,799	$	32,792	$	66,049	$	65,556
Liabilities (including current maturities):
2.75% Convertible Notes (2),(3)	Level 2	$	195,295	$	176,094	$	193,696	$	249,895	$	—	$	—
Credit Agreement - term loan (2)	Level 3		136,875		137,194		138,750		139,042		144,375		145,206
Credit Agreement - revolving credit facility (2)	Level 3		25,000		25,061		25,000		25,043		197,000		197,406
2019 Notes (2)	Level 3		—		—		—		—		40,000		41,207

(1) All marketable securities were classified as held-to-maturity and consisted of U.S. Government and agency obligations as of  March 31, 2020 and  December 31, 2019, and included corporate bonds as of March 31, 2019.

(2) The fair values of the 2019 Notes, Credit Agreement term loan and revolving credit facility are based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk. The fair value of the 2.75% Convertible Notes is based on the median price of the notes in an active market as of March 31, 2020 and December 31, 2019. See Note 14 for definitions of, and more information about, the 2019 Notes, Credit Agreement and 2.75% Convertible Notes. 

(3) Excluded from the carrying value is $34.7 million and $36.3 million of debt discount as of March 31, 2020 and December 31, 2019, respectively, related to the 2.75% Convertible Notes (see Note 14).

As disclosed in Note 4, we recorded fair value adjustments related to nonfinancial assets measured at fair value on a nonrecurring basis during the three months ended March 31, 2020.  During the three months ended March 31, 2020, we did not record any fair value adjustments related to nonfinancial liabilities measured at fair value on a nonrecurring basis. During the three months ended March 31, 2019, we did not record any fair value adjustments related to nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.