v3.26.1
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of financial instruments has been estimated by the Company using available market information as of June 30, 2026 and December 31, 2025, and valuation methodologies considered appropriate. The estimates presented in the table below are not necessarily indicative of amounts the Company could realize in a current market exchange (in millions):

 

 

 

June 30, 2026

 

 

December 31, 2025

 

 

 

Carrying

 

 

Estimated
Fair

 

 

Carrying

 

 

Estimated
Fair

 

 

 

Amount

 

 

Value

 

 

Amount

 

 

Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

149

 

 

$

149

 

 

$

260

 

 

$

260

 

Investments in equity securities

 

 

86

 

 

 

86

 

 

 

79

 

 

 

79

 

Available-for-sale debt securities

 

 

246

 

 

 

246

 

 

 

226

 

 

 

226

 

Trading securities

 

 

5

 

 

 

5

 

 

 

5

 

 

 

5

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

6⅞% Senior Notes due 2028

 

 

42

 

 

 

40

 

 

 

42

 

 

 

35

 

6% Senior Secured Notes due 2029

 

 

632

 

 

 

639

 

 

 

630

 

 

 

644

 

5¼% Senior Secured Notes due 2030

 

 

1,484

 

 

 

1,448

 

 

 

1,479

 

 

 

1,442

 

4¾% Senior Secured Notes due 2031

 

 

688

 

 

 

634

 

 

 

1,055

 

 

 

942

 

10⅞% Senior Secured Notes due 2032

 

 

1,541

 

 

 

1,671

 

 

 

1,992

 

 

 

2,188

 

10¾% Senior Secured Notes due 2033

 

 

698

 

 

 

762

 

 

 

698

 

 

 

741

 

9¾% Senior Secured Notes due 2034

 

 

1,763

 

 

 

1,869

 

 

 

1,762

 

 

 

1,881

 

6⅞% Junior-Priority Secured Notes due 2029

 

 

1,197

 

 

 

1,227

 

 

 

1,189

 

 

 

1,108

 

6⅛% Junior-Priority Secured Notes due 2030

 

 

1,188

 

 

 

1,101

 

 

 

1,183

 

 

 

985

 

ABL Facility and other debt

 

 

48

 

 

 

48

 

 

 

21

 

 

 

21

 

 

The carrying value of the Company’s long-term debt in the above table is presented net of unamortized deferred debt issuance costs. The estimated fair value is determined using the methodologies discussed below in accordance with accounting standards related to the determination of fair value based on the U.S. GAAP fair value hierarchy as discussed in Note 8 - Fair Value. The estimated fair value for financial instruments with a fair value that does not equal its carrying value is considered a Level 1 valuation. The Company utilizes the market approach and obtains indicative pricing through publicly available subscription services such as Bloomberg to determine fair values where relevant.

Cash and cash equivalents. The carrying amount approximates fair value due to the short-term maturity of these instruments (less than three months).

Investments in equity securities. Estimated fair value is based on closing price as quoted in public markets.

Available-for-sale debt securities. Estimated fair value is based on closing price as quoted in public markets or other various valuation techniques.

Trading securities. Estimated fair value is based on closing price as quoted in public markets.

Senior Notes, Senior Secured Notes and Junior-Priority Secured Notes. Estimated fair value is based on the closing market price for these notes.

ABL Facility and other debt. The carrying amount of the ABL Facility and all other debt approximates fair value due to the nature of these obligations.