Fair Value of Assets and Liabilities

12 Months Ended

Dec. 31, 2018

The Company’s Consolidated Balance Sheets reflect certain financial instruments at carrying value. The following table presents the carrying values of those instruments and the corresponding estimated fair values (in thousands):



	Estimated Fair Value Measurements at December 31, 2018
	Carrying Value as of December 31, 2018		Total Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	31,255	$	31,255	$	31,255	$	—	$	—
Restricted cash and investments	53,217		53,217		50,499		2,718		—
Liabilities:
Borrowings under Senior Credit Facility	$	1,273,965	$	1,188,196	$	—	$	1,188,196	$	—
5.875% Senior Notes due 2024	250,000		224,590		—		224,590		—
5.125% Senior Notes	300,000		271,992		—		271,992		—
5.875% Senior Notes due 2022	250,000		244,550		—		244,550		—
6.00% Senior Notes	350,000		310,177		—		310,177		—
Non-recourse debt	340,910		348,274		—		348,274		—



	Estimated Fair Value Measurements at December 31, 2017
	Carrying Value as of December 31, 2017		Total Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	81,377	$	81,377	$	81,377	$	—	$	—
Restricted cash	52,168		52,168		49,884		2,284		—
Liabilities:
Borrowings under Senior Credit Facility	$	1,064,599	$	1,070,514	$	—	$	1,070,514	$	—
5.875% Senior Notes due 2024	250,000		262,095		—		262,095		—
5.125% Senior Notes	300,000		303,918		—		303,918		—
5.875% Senior Notes due 2022	250,000		258,338		—		258,338		—
6.00% Senior Notes	350,000		362,835		—		362,835		—
Non-recourse debt	393,737		394,671		—		394,671		—

The fair values of the Company’s cash and cash equivalents, and restricted cash approximates the carrying values of these assets at December 31, 2018 and 2017. Restricted cash consists of money market funds, commercial paper and time deposits used for payments on the Company’s non-recourse debt and asset replacement funds contractually required to be maintained at the Company's Australian subsidiary. The fair value of the money market funds 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 6.00% senior unsecured notes due 2026 (the “6.00% Senior Notes”), 5.125% Senior Notes due 2023 (the “5.125% Senior Notes”), 5.875% Senior Notes due 2022 (the "5.875% Senior Notes due 2022”) and the 5.875% Senior Notes due 2024 (the "5.875% Senior Notes due 2024"), although not actively traded, are based on published financial data for these instruments. The fair value of the Company’s non-recourse debt is based on estimate of trading value considering the Company's borrowing rate, the undrawn spread and similar instruments. The fair value of borrowings under the Senior Credit Facility is also 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.

+ References + Details