Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of financial instruments measured at fair value on a recurring basis

The following table sets forth our assets and liabilities that are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):

Fair Value at September 30, 2022

Level 1

Level 2

Level 3

Total

Liabilities:

Contingent consideration

—

29,364

Schedule of changes in the fair value of contingent consideration

The changes in the fair value of contingent consideration are as follows:


	2022
Balance at July 1,	$	26,700
Change in fair value		2,664
Balance at September 30,	$	29,364

Schedule of principal amount and estimated fair value of long-term debt

The principal amount and estimated fair value of our long-term debt are as follows (in thousands):


	September 30, 2022				December 31, 2021
	Principal		Fair		Principal		Fair
	Amount ⁽¹⁾		Value ⁽²⁾		Amount ⁽¹⁾		Value ⁽²⁾
MARAD Debt (matures February 2027)	$	40,913	$	40,496	$	48,850	$	52,481
2022 Notes (matured May 2022)		—		—		35,000		34,794
2023 Notes (mature September 2023)		30,000		29,504		30,000		29,054
2026 Notes (mature February 2026)		200,000		205,754		200,000		200,562
Total debt	$	270,913	$	275,754	$	313,850	$	316,891

(1)	Principal amount includes current maturities and excludes any related unamortized debt issuance costs. See Note 6 for additional disclosures on our long-term debt.

(2)

The estimated fair value of the 2022 Notes, the 2023 Notes and the 2026 Notes was determined using Level 1 fair value inputs under the market approach. The fair value of the MARAD Debt was estimated using Level 2 fair value inputs under the market approach, which was determined using a third-party evaluation of the remaining average life and outstanding principal balance of the indebtedness as compared to other obligations in the marketplace with similar terms.