Fair Value of Financial Instruments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the condensed consolidated balance sheets, approximates fair value due to the short maturities of these instruments. The carrying amount and fair value of our total debt is as follows:
identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third- party market transactions on our debt are executed. We have no debt categorized within level 3 on the fair value hierarchy. Credit riskWe have entered into CDSs with third-party financial institutions that had an aggregate notional amount outstanding as of June 30, 2025 of $909 million, compared to an aggregate notional amount outstanding as of March 31, 2025 of $1.0 billion, related to borrowings provided by the financial institutions to one of our primary customers in Mexico, of which a portion of the proceeds were then utilized by this customer to pay certain of our outstanding receivables. Approximately $124 million of the outstanding amount of the CDSs reduces monthly over its remaining 8-month term and $139 million reduces monthly over its remaining 12-month term. The remaining $646 million outstanding amount reduces monthly over its remaining 15-month term. The fair value of the derivative liabilities was not material to our financial condition as of June 30, 2025.
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