Annual report pursuant to Section 13 and 15(d)

FAIR VALUE OF FINANCIAL INSTRUMENTS

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FAIR VALUE OF FINANCIAL INSTRUMENTS
12 Months Ended
Dec. 31, 2021
FAIR VALUE OF FINANCIAL INSTRUMENTS  
FAIR VALUE OF FINANCIAL INSTRUMENTS

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

Methods and assumptions used to estimate the fair value of financial instruments are affected by the duration of the instruments and other factors used by market participants to estimate value. The carrying amounts for cash and equivalents, restricted cash, accounts receivable, and accounts payable approximate their estimated fair value because of the short durations of the instruments and inconsequential rates of interest. Management also believes that the carrying value of variable long-term debt also approximates their estimated fair value because the terms of the facilities are representative of current market conditions. While management believes the carrying value of our finance lease obligation approximates its fair value because certain terms of the lease were renegotiated, management also believes that precise estimates are not practical because of the unique nature of the relationships. Similarly, contract liabilities represent the sum of certain annual prepayments of contracted revenue and all six of one-time market access fees from the Company’s Sports Agreements.

On March 31, 2021, the Interest Rate Cap the Company purchased to help manage potential interest rate increases on the Prior Notes expired.

The carrying amounts and estimated fair values by input level of the Company’s financial instruments were as follows as of December 31, 2021 and 2020.

(In thousands)

Financial instruments

not designated

December 31, 2021

for hedging:

    

Balance Sheet Location

    

Level 1

    

Level 2

    

Level 3

    

Total

Interest rate cap

 

Deposits and other assets

$

$

$

$

Common stock warrants

 

Common stock warrant liability

$

$

$

$

(In thousands)

Financial instruments

not designated

December 31, 2020

for hedging:

    

Balance Sheet Location

    

Level 1

    

Level 2

    

Level 3

    

Total

Interest rate cap

 

Deposits and other assets

$

$

$

$

Common stock warrants

 

Common stock warrant liability

$

$

$

2,653

$

2,653