Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Measurements

v3.19.2
Fair Value of Measurements
6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value of Measurements
Note 7 - Fair Value of Measurements
Certain of our assets and liabilities are required to be measured at fair value on a recurring basis. For purposes of recording fair value adjustments for certain financial and non-financial assets and liabilities, and determining fair value disclosures, we estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability.
The fair value measurement and disclosure requirements of FASB ASC Topic No. 820, Fair Value Measurement and Disclosures requires inputs that we categorize using a three-level hierarchy, from highest to lowest level of observable inputs, as follows:
Level 1 — Unadjusted quoted prices for identical assets or liabilities in active markets;
Level 2 — Direct or indirect observable inputs, including quoted prices or other market data, for similar assets or liabilities in active markets or identical assets or liabilities in less active markets; and
Level 3 — Unobservable inputs that require significant judgment for which there is little or no market data.
When multiple input levels are required for a valuation, we categorize the entire fair value measurement according to the lowest level of input that is significant to the entire measurement even though we may also have utilized significant inputs that are more readily observable. The amounts reported in our consolidated condensed balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value.
Fair value of our Term Loan is determined using Level 2 inputs. The Level 2 fair value was determined using a market approach by comparing secured debt of other companies in our industry that have a similar credit rating and debt amount. Fair value of our 6.75% Notes and 7.50% Notes was determined using Level 2 inputs.
Fair values and related carrying values of our debt instruments were as follows:
 
Successor
 
 
Predecessor
 
June 30, 2019
 
 
December 31, 2018
Dollars in thousands
Carrying Amount
 
Fair Value
 
 
Carrying Amount
 
Fair Value
Successor term loan, due March 2024
$
211,132

 
$
252,254

 
 
$

 
$

Predecessor 6.75% senior notes, due July 2022

 

 
 
360,000

 
180,000

Predecessor 7.50% senior notes, due August 2020

 

 
 
225,000

 
117,000

Total
$
211,132

 
$
252,254

 
 
$
585,000

 
$
297,000


Market conditions could cause an instrument to be reclassified from Level 1 to Level 2, or Level 2 to Level 3. There were no transfers between levels of the fair value hierarchy or any changes in the valuation techniques used during the six months ended June 30, 2019.