Fair Value Measurements |
9 Months Ended |
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Sep. 30, 2019 | |
| Fair Value Measurements | |
| Fair Value Measurements |
5. FAIR VALUE MEASUREMENTS
Fair Value on Recurring Basis
The carrying values of cash and cash equivalents, receivables, net, and accounts payable are considered to be representative of their respective fair values due to the short-term nature of these instruments. We measure our contingent consideration liabilities related to business combinations at fair value. For more information see Note 12 –Business Combinations.
Fair Value on Non-Recurring Basis
Fair value measurements were applied to our long-term debt portfolio. We believe the carrying value of our term loan approximates the fair market value primarily due to the fact that the non-performance risk of servicing our debt obligations, as reflected in our business and credit risk profile, has not materially changed since we assumed our debt obligations under the Amended Credit Agreement. In addition, due to the floating-rate nature of our term loan, the market value is not subject to variability solely due to changes in the general level of interest rates as is the case with a fixed-rate debt obligation. Based on active market trades of our Senior Notes close to September 30, 2019 (Level 1 fair value measurement), we estimate that the fair value of the Senior Notes is approximately $419.0 million compared to a gross carrying value of $400.0 million at September 30, 2019.
During all periods presented, there were no transfers between fair value hierarchical levels.
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