Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

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 March 31, 2023

Level 1

Level 2

Level 3

Total

Liabilities:

Contingent consideration

—

46,746

Schedule of changes in the fair value of contingent consideration

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


	2023
Balance at January 1,	$	42,754
Change in fair value		3,992
Balance at March 31,	$	46,746

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):


	March 31, 2023				December 31, 2022
	Principal		Fair		Principal		Fair
	Amount ⁽¹⁾		Value ⁽²⁾		Amount ⁽¹⁾		Value ⁽²⁾
MARAD Debt (matures February 2027)	$	36,797	$	36,888	$	40,913	$	40,940
2023 Notes (mature September 2023)		30,000		30,590		30,000		31,149
2026 Notes (mature February 2026)		200,000		274,287		200,000		277,014
Total debt	$	266,797	$	341,765	$	270,913	$	349,103

(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 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.