v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

NOTE 10. — FAIR VALUE MEASUREMENTS

Debt Instruments

As of June 30, 2026 and December 31, 2025, the fair value of borrowings under the Credit Facility was $73.1 million and $251.3 million, respectively. As of June 30, 2026 and December 31, 2025, the fair values of borrowings under our Senior Unsecured Notes were $953.6 million and $708.4 million, respectively. The fair values of borrowings outstanding as of June 30, 2026 and December 31, 2025 were determined using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration, risk profile and borrowings outstanding, which are based on unobservable inputs within Level 3 of the Fair Value Hierarchy.

Derivative Instruments

As of June 30, 2026 and December 31, 2025, we were not party to any derivative instruments and no derivative positions were included on our consolidated balance sheets. Periodically, we use interest rate swap agreements to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis of the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves.

Supplemental Retirement Plan

We have mutual fund assets that are measured at fair value on a recurring basis using Level 1 inputs. We have a Supplemental Retirement Plan for executives. The amounts held in trust under the Supplemental Retirement Plan using Level 2 inputs may be used to satisfy claims of general creditors in the event of our or any of our subsidiaries’ bankruptcy. We have liability to the executives participating in the Supplemental Retirement Plan for the participant account balances equal to the aggregate of the amount invested at the executives’ direction and the income earned in such mutual funds.

The following summarizes as of June 30, 2026, our assets and liabilities measured at fair value on a recurring basis by level within the Fair Value Hierarchy (in thousands):

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

2,633

 

 

$

—

 

 

$

—

 

 

$

2,633

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation

 

$

—

 

 

$

2,633

 

 

$

—

 

 

$

2,633

 

 

The following summarizes as of December 31, 2025, our assets and liabilities measured at fair value on a recurring basis by level within the Fair Value Hierarchy (in thousands):

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

2,309

 

 

$

—

 

 

$

—

 

 

$

2,309

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation

 

$

—

 

 

$

2,309

 

 

$

—

 

 

$

2,309

 

 

Real Estate Assets

As of June 30, 2026 and December 31, 2025, we had real estate assets of $4.8 million and $2.1 million, respectively, that were measured at fair value on a non-recurring basis using Level 3 inputs where impairment charges have been recorded. Due to the subjectivity inherent in the internal valuation techniques used in estimating fair value, the amounts realized from the sale of such assets may vary significantly from these estimates.