v3.26.1
Fair Value of Assets and Liabilities
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Assets and Liabilities

4. FAIR VALUE OF ASSETS AND LIABILITIES

The Company’s consolidated balance sheets reflect certain financial assets and liabilities at carrying value. The carrying value of certain debt instruments, if applicable, is net of unamortized discount. The following tables present the carrying values of those financial instruments and the estimated corresponding fair values at June 30, 2026 and December 31, 2025 (in thousands):

 

 

 

 

 

 

Estimated Fair Value Measurements at June 30, 2026

 

 

 

Carrying Value as
of June 30,
2026

 

 

Total Fair
Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

54,992

 

 

$

54,992

 

 

$

54,992

 

 

$

—

 

 

$

—

 

Restricted cash

 

 

106,389

 

 

 

106,389

 

 

 

106,389

 

 

 

—

 

 

 

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under credit agreement

 

$

248,941

 

 

$

248,941

 

 

$

—

 

 

$

248,941

 

 

$

—

 

8.625% Senior Secured Notes due 2029

 

 

650,000

 

 

 

677,469

 

 

 

—

 

 

 

677,469

 

 

 

—

 

10.250% Senior Notes due 2031

 

 

625,000

 

 

 

676,163

 

 

 

—

 

 

 

676,163

 

 

 

—

 

 

 

 

 

 

 

Estimated Fair Value Measurements at December 31, 2025

 

 

 

Carrying Value as
of December 31,
2025

 

 

Total Fair
Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

68,995

 

 

$

68,995

 

 

$

68,995

 

 

$

—

 

 

$

—

 

Restricted cash

 

 

54,640

 

 

 

54,640

 

 

 

54,640

 

 

 

—

 

 

 

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under credit agreement

 

$

358,583

 

 

$

358,583

 

 

$

—

 

 

$

358,583

 

 

$

—

 

8.625% Senior Secured Notes due 2029

 

 

650,000

 

 

 

684,437

 

 

 

—

 

 

 

684,437

 

 

 

—

 

10.250% Senior Notes due 2031

 

 

625,000

 

 

 

685,375

 

 

 

—

 

 

 

685,375

 

 

 

—

 

 

The fair values of the Company’s cash and cash equivalents, and restricted cash and investments approximates the carrying values of these assets at June 30, 2026 and December 31, 2025. Restricted cash consists of money market funds, bank deposits, commercial paper and time deposits used for asset replacement funds and other funds contractually required to be maintained at the Company's Australian subsidiary. It also includes cash on hand in the Company’s captive insurance subsidiary, Florina. The fair value of the money market funds and bank deposits is based on quoted market prices (Level 1).

As of June 30, 2026 and December 31, 2025, the recurring fair values of the Company's 8.625% Secured Notes due 2029 and the 10.250% Senior Notes due 2031 are based on Level 2 inputs using quotations by major market news services, such as Bloomberg. The fair value of the Company's Credit Agreement was also based on quotations by major market news services and also estimates of trading value considering the Company's borrowing rate, the undrawn spread and similar instruments.