Fair Value Measurements
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable.
•Level 1 - Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets or liabilities.
•Level 2 - Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily available pricing sources for comparable instruments.
•Level 3 - Unobservable inputs for which there is little or no market activity for the asset or liability. These inputs reflect the reporting entity's own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances.
The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis:
| | | | | | | | | | | | | | | | | | | | |
| | | | Fair Value |
| (in millions) | | Fair Value Level | | December 31, 2025 | | December 31, 2024 |
| Cash equivalents | | 1 | | $ | 0.4 | | | $ | 12.3 | |
| Short-term investments in marketable securities | | 1 | | 0.8 | | | 0.8 | |
| Restricted cash | | 1 | | 18.1 | | | 16.9 | |
| Derivative assets | | 2 | | 13.3 | | | 22.1 | |
| Derivative liabilities | | 2 | | 58.2 | | | 9.4 | |
| Deferred compensation | | 1 | | 1.1 | | | 1.0 | |
| Deferred compensation | | 2 | | 22.6 | | | 19.2 | |
| Liabilities measured at net asset value | | | | 15.6 | | | 14.3 | |
| | | | | | |
Fair Value of Other Financial Instruments. The carrying values of the Company’s short-term financial instruments, including cash and cash equivalents and accounts and notes receivable, approximate their fair values because of the short maturity of these instruments. The fair value of the Company’s long-term debt, including current maturities, and short-term debt was determined using Level 1 and Level 2 inputs described above. The fair value and carrying value of long-term debt, including current maturities, and short term debt as of December 31, 2025 and December 31, 2024, was as follows:
| | | | | | | | | | | | | | | |
| (in millions) | | December 31, 2025 | | December 31, 2024 | |
| Fair Value | | $ | 2,004.9 | | | $ | 2,161.3 | | |
| Carrying Value | | 2,118.0 | | | 2,370.2 | | |
Refer to Note 12 – Financial Instruments for additional information related to the fair value of derivative assets and liabilities by class.