Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

Fair Value Measurements
3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company applies fair value accounting to all financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The fair value of the Company’s cash and cash equivalents, restricted cash, accounts receivable, and other current assets and liabilities approximates their carrying amounts due to the relatively short maturity of these items. The fair value of third-party notes payable approximates the carrying value because the interest rates are variable and reflect market rates.
Fair Value of Financial Instruments
The Company categorizes assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets based upon the level of judgment associated with inputs used to measure their fair value. It is not practicable due to cost and effort for the Company to estimate the fair value of notes issued to related parties primarily due to the nature of their terms relative to the entity’s capital structure.
Assets and liabilities carried at fair value are valued and disclosed in one of the following three levels of the valuation hierarchy:
Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 – Inputs are quoted prices in active markets for similar assets or liabilities or inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – Inputs are unobservable and require significant management judgment or estimation.
The following table summarizes the financial assets and liabilities of the Company that are measured at fair value on a recurring basis (in millions):
Fair Value Measurements at March 31, 2023
Level 1 Level 2 Level 3
Cash, cash equivalents, and restricted cash $ 90.1  $ —  $ — 
Discretionary retirement plan $ 3.5  $ 0.9  $ — 
Accrued interest receivable on cross-currency rate swaps —  —  — 
Discretionary retirement plan $ 3.5  $ 0.9  $ — 
Public warrants $ 30.2  $ —  $ — 
Private placement warrants $ —  $ 13.7  $ — 
Cross-currency rate swaps (Note 18) $ —  $ 15.8  $ — 
Fair Value Measurements at December 31, 2022
Level 1 Level 2 Level 3
Cash, cash equivalents, and restricted cash $ 75.0  $ —  $ — 
Discretionary retirement plan $ 3.1  $ 0.9  $ — 
Accrued interest receivable on cross-currency rate swaps $ —  $ 0.1  $ — 
Discretionary retirement plan $ 3.1  $ 0.9  $ — 
Public warrants $ 21.0  $ —  $ — 
Private placement warrants $ —  $ 9.5  $ — 
Cross-currency rate swaps (Note 18) $ —  $ 12.9  $ — 
The cross-currency rate swaps the Company entered into in the year ended December 31, 2022 are not exchange traded instruments. Their fair value is determined using the cash flows of the swap contracts, discount rates to account for the passage of time, current foreign exchange market data and credit risk, which are all based on inputs readily available in public markets and categorized as Level 2 fair value hierarchy measurements.
As of March 31, 2023 and December 31, 2022, the fair value of Public Warrants issued in connection with GSAH's IPO have been measured based on the listed market price of such Public Warrants, a Level 1 measurement.
As the transfer of Private Placement Warrants to anyone who is not a permitted transferee would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, we determined that the fair value of each Private Placement Warrant is equivalent to that of each Public Warrant. The determination of the fair value of the warrant liability may be subject to change as more current information becomes available and accordingly the actual results could differ significantly. Derivative warrant liabilities are classified as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities.
For the three months ended March 31, 2023, the Company recognized an unrealized loss resulting from an increase in the fair value of the warrant liabilities of $13.4 million, which is presented in the Condensed Consolidated Statements of Operations as change in fair value of warrant liabilities.
Nonrecurring Basis Fair Value Measurements
There are nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis such as assets and liabilities held for sale. The fair value of assets held for sale was measured on a non-recurring basis based on the lower of the carrying amount or fair value less cost to sell. The fair value measurement was categorized as Level 3, as the fair values utilize significant unobservable inputs. See Note 3, Assets and Liabilities Held for Sale for further details.