Note 11 - Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Fair Value Disclosures [Text Block]

11. Fair Value Measurements

Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

•  Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•  Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•  Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

Our population of assets and liabilities subject to fair value measurements at June 30, 2022 was as follows:

	Fair
	Value		Level 1		Level 2		Level 3
Assets:
Foreign currency forward exchange contracts	$	0.5	$	—	$	0.5	$	—
Cross-currency swaps		4.3		—		4.3		—
Total assets		4.8		—		4.8		—
Liabilities:
Foreign currency forward exchange contracts		0.2		—		0.2		—
Total liabilities	$	0.2	$	—	$	0.2	$	—

Our population of assets and liabilities subject to fair value measurements at  December 31, 2021 was as follows:

	Fair
	Value		Level 1		Level 2		Level 3
Assets:
Foreign currency forward exchange contracts	$	0.9	$	—	$	0.9	$	—
Total assets		0.9		—		0.9		—
Liabilities:
Foreign currency forward exchange contracts		11.4		—		11.4		—
Total liabilities	$	11.4	$	—	$	11.4	$	—

Our foreign currency forward exchange contracts and cross-currency swaps are valued using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present value amount. Further details regarding our derivative instruments are discussed in Note 10.

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, other current assets, accounts payable and other current liabilities approximate fair value due to their short-term nature.

The fair value and carrying value of total debt, including current portion, was $266.8 million and $265.8 million, respectively, as of June 30, 2022. The fair value and carrying value of total debt, including current portion, was $271.2 million and $267.6 million, respectively, as of December 31, 2021. The fair value was calculated based on the borrowing rates currently available to us for bank loans with similar terms and remaining maturities, which is a Level 2 in the fair value hierarchy.