Note 14: Fair Value Measurements
The FASB accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs.
The following table sets forth the carrying values (exclusive of deferred financing fees) and fair values of our financial liabilities:
Carrying ValueFair Value
(in $000s)Level 1Level 2Level 3
December 31, 2025
ABL Facility$697,975 $— $697,975 $— 
2029 Secured Notes920,000 — 901,600 — 
2023 Credit Facility17,297 — 17,297 — 
Other notes payable25,487 — 25,487 — 
December 31, 2024
ABL Facility$582,900 $— $582,900 $— 
2029 Secured Notes920,000 — 859,050 — 
2023 Credit Facility17,648 — 17,733 — 
Other notes payable27,102 — 27,102 — 
The carrying amounts of the ABL Facility, 2023 Credit Facility and other notes payable approximated fair value as of December 31, 2025 and 2024 based upon terms and conditions available to the Company at those dates in comparison to the terms and conditions of its outstanding debt. The estimated fair value of the 2029 Secured Notes is calculated using Level 2 inputs, based on bid prices obtained from brokers.

Historical Timeline

Fiscal YearFiled
2025Mar 10, 2026Showing above
2024Mar 4, 2025
2023Mar 7, 2024
2022Mar 14, 2023
2021Mar 16, 2022
2020Mar 9, 2021
2019Mar 16, 2020
2018Mar 4, 2019

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.