Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2016

FAIR VALUE OF ASSETS AND LIABILITIES

The Company’s consolidated balance sheets reflect certain financial assets and liabilities at carrying value. The carrying value of certain debt instruments, if applicable, is net of unamortized discount. The following tables present the carrying values of those financial instruments and the estimated corresponding fair values at September 30, 2016 and December 31, 2015 (in thousands):



			Estimated Fair Value Measurements at September 30, 2016
	Carrying Value as of September 30, 2016		Total Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	30,123	$	30,123	$	30,123	$	—	$	—
Restricted cash and investments	111,594		111,594		108,541		3,053		—
Liabilities:
Borrowings under senior credit facility	$	765,250	$	751,793	$	—	$	751,793	$	—
5.875% Senior Notes due 2024	250,000		215,938		—		215,938		—
5.125% Senior Notes	300,000		255,375		—		255,375		—
5.875% Senior Notes due 2022	250,000		225,625		—		225,625		—
6.00% Senior Notes	350,000		301,438		—		301,438		—
Non-recourse debt, Australian subsidiary	482,789		482,738		—		482,738		—
Other non-recourse debt, including current portion	42,707		44,221		—		44,221		—



			Estimated Fair Value Measurements at December 31, 2015
	Carrying Value as of December 31, 2015		Total Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	59,638	$	59,638	$	59,638	$	—	$	—
Restricted cash and investments	15,654		15,654		11,536		4,118		—
Liabilities:
Borrowings under senior credit facility	$	777,500	$	777,500	$	—	$	777,500	$	—
5.875% Senior Notes due 2024	250,000		245,783		—		245,783		—
5.125% Senior Notes	300,000		285,189		—		285,189		—
5.875% Senior Notes due 2022	250,000		248,125		—		248,125		—
6.625% Senior Notes	300,000		308,625		—		308,625		—
Non-recourse debt, Australian subsidiary	204,539		204,531		—		204,531		—
Other non-recourse debt, including current portion	42,592		43,353		—		43,353		—

The fair values of the Company’s cash and cash equivalents, and restricted cash approximates the carrying values of these assets at September 30, 2016 and December 31, 2015. Restricted cash consists of money market funds, bank deposits, commercial paper and time deposits used for payments on the Company’s non-recourse debt, asset replacement funds contractually required to be maintained at the Company's Australian subsidiary and contractual commitments related to the design and construction of a new facility in Ravenhall Australia. The fair value of the money market funds and bank deposits is based on quoted market prices (Level 1) and the fair value of commercial paper and time deposits is based on market prices for similar instruments (Level 2).

The fair values of the Company's 5.875% senior unsecured notes due 2022 ("5.875% Senior Notes due 2022"), 5.875% senior unsecured notes due 2024 ("5.875% Senior Notes due 2024"), 6.625% senior unsecured notes due 2021 ("6.625 Senior Notes"), 6.00% senior unsecured notes due 2026 (“6.00% Senior Notes”), and the 5.125% senior unsecured notes due 2023 ("5.125% Senior Notes"), although not actively traded, are based on published financial data for these instruments. On April 18, 2016, the Company completed an offering of $350 million aggregate principal amount of the 6.00% Senior Notes. The Company used part of the net proceeds to fund the tender offer or the repurchase, redemption or other discharge of any and all of its 6.625% Senior Notes. Refer to Note 10 - Debt. The fair values of the Company's non-recourse debt related to the Washington Economic Development Finance Authority ("WEDFA") is based on market prices for similar instruments. The fair value of the non-recourse debt related to the Company’s Australian subsidiary is estimated using a discounted cash flow model based on current Australian borrowing rates for similar instruments. The fair value of borrowings under the senior credit facility is based on an estimate of trading value considering the Company’s borrowing rate, the undrawn spread and similar instruments.

- 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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