v3.26.1
Note 4 - Investments and Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

4. Investments and Fair Value Measurements:

 

Certain assets and liabilities are reported at fair value in our accompanying condensed consolidated balance sheets. Such assets and liabilities include amounts for both financial and non-financial instruments. ASC 820-10, Fair Value Measurements, established a three-level fair value hierarchy to prioritize the inputs to valuation techniques used to measure fair value, as follows:

 

Level 1 - Assets or liabilities for which the identical item is traded on an active exchange, such as publicly-traded instruments.

 

Level 2 - Assets or liabilities valued based on observable market data for similar instruments.

 

Level 3 - Assets or liabilities for which significant valuation assumptions are not readily observable in the market; instruments valued based on the best available data, some of which are internally-developed, and considers risk premiums that market participants would require.

 

The fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and short-term debt approximate their carrying amounts, because of the short-term nature of these instruments and are classified as Level 1. Our investments in registered investment companies, which are Level 1 assets measured at fair value on a recurring basis, were $0.8 million and $0.7 million, as of June 30, 2026 and December 31, 2025, respectively. Our investments in registered investment companies are valued using quoted prices in active markets multiplied by the number of shares owned and were included in "Other current assets" in our accompanying condensed consolidated balance sheets. 

    

We elected not to carry our long-term debt at fair value. The carrying value of the long-term debt represents amortized cost, inclusive of unamortized premium, and net of unamortized discount and debt issuance costs. We assess the fair value of these financial instruments based on an estimate of interest rates available to us for financial instruments with similar features, our current credit rating, and spreads applicable to us. The following table summarizes the carrying value and estimated fair value of these financial instruments as of June 30, 2026 and December 31, 2025, respectively:

 

   

June 30, 2026

  

December 31, 2025

 
 

Fair Value

 

Carrying

  

Estimated

  

Carrying

  

Estimated

 
 

Hierarchy

 

Value

  

Fair Value

  

Value

  

Fair Value

 

Financial instruments not carried at fair value:

                 

Senior notes (Note 6)

Level 2

 $4,207.6  $4,067.6  $4,715.4  $4,670.6 

 

As of June 30, 2026 and December 31, 2025, we had securities without readily determinable market values of $198.8 million and $198.9 million, respectively, which were accounted for at cost. We do not have the ability to exercise significant influence over the investees’ operating and financial policies and do not hold investments in common stock or in-substance common stock in such entities. As of June 30, 2026 and December 31, 2025, we also had investments in private companies of $24.3 million and $29.8 million, respectively, accounted for in accordance with ASC 323-10-25, The Equity Method of Accounting for Investments in Common Stock ("ASC 323-10-25"), as equity method investments. All such investments were included in "Other noncurrent assets" in our accompanying condensed consolidated balance sheets. For the three and six months ended June 30, 2026, there was no provision for credit losses related to these investments.