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Fair Value Measurement
 12 Months Ended
Dec. 31, 2024
Fair Value Measurements, Nonrecurring Value Measurement [Abstract]  
Fair Value Measurement
8. Fair Value Measurement
The following tables summarize significant assets and liabilities measured at fair value in the consolidated balance sheets on a recurring basis for each of the fair value levels (in thousands):
Fair Value Measurement at Reporting Date Using
December 31, 2024Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$73,031 $— $— $73,031 
Total assets$73,031 $— $— $73,031 
Accrued and other current liabilities:
Heating oil swaps$— $531 $— $531 
Diesel collars — 177 — 177 
Total liabilities$— $708 $— $708 
December 31, 2023    
Cash equivalents:    
Money market funds$101,275 $— $— $101,275 
Total assets$101,275 $— $— $101,275 
Accrued and other current liabilities:
Interest rate swap$— $126 $— $126 
Heating oil swaps— 153 — 153 
Diesel collars — 802 — 802 
Total liabilities$— $1,081 $— $1,081 
Interest Rate Swap
In connection with entering into Amendment No. 2 of the Fourth Amended and Restated Credit Agreement in November 2023, we entered into an interest rate swap designated as a cash flow hedge with an initial notional amount of $75.0 million and an effective date of December 2023 and a maturity date of June 2027. In conjunction with the payoff of our term loan in June 2024, the interest rate swap was terminated resulting in an immaterial gain.
Commodity Derivatives
In 2023 and 2024, we entered into collar contracts and commodity swaps to reduce our price exposure on diesel consumption and heating oil consumption, respectively. The collars and swaps were not designated as hedges and will be treated as a mark-to-market derivative instruments through their maturity dates. The financial statement impact of the collar contracts and commodity swaps was immaterial for the years ended December 31, 2024 and 2023.
In April 2024 and December 2022, we entered into commodity swaps designated as cash flow hedges to reduce our price exposure on crude oil with maturity dates of October 31, 2024 and October 31, 2023, respectively. The financial statement impact of these swaps was immaterial during the years ended December 31, 2024, 2023 and 2022.
Other Assets and Liabilities
The carrying values and estimated fair values of our financial instruments that are not required to be recorded at fair value in the consolidated balance sheets were as follows (in thousands):
(in thousands)December 31, 2024December 31, 2023
Fair Value HierarchyCarrying ValueFair ValueCarrying ValueFair Value
Assets:
Held-to-maturity marketable securities (1)Level 1$7,311 $7,312 $35,863 $35,357 
Liabilities (including current maturities):
3.75% Convertible Notes (2)
Level 2$373,750 $738,724 $373,750 $475,601 
3.25% Convertible Notes (2)
Level 2$373,750 $491,582 $— $— 
2.75% Convertible Notes (2)
Level 2$— $— $31,338 $51,045 
Credit Agreement - Term Loan (2)Level 3$— $— $150,000 $153,585 
Credit Agreement - Revolver (2)Level 3$— $— $100,000 $102,317 
(1)All marketable securities were classified as held-to-maturity and consisted of U.S. Government and agency obligations as of December 31, 2024 and 2023.
(2)The fair values of our our 3.25% convertible senior notes due 2030 (the "3.25% Convertible Notes"), our 3.75% convertible senior notes due 2028 (the "3.75% Convertible Notes") and our 2.75% convertible senior notes due 2024 (the "2.75% Convertible Notes") are based on the median price of the notes in an active market. The fair value of the Credit Agreement is based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk. See Note 14 for more information about our convertible notes and the Credit Agreement.
The carrying value of marketable securities approximates their fair value as determined by market quotes. Rates currently available to us for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. The carrying value of receivables and other amounts arising out of normal contract activities, including retentions, which may be settled beyond one year, is estimated to approximate fair value.
At least annually, we measure certain nonfinancial assets and liabilities at fair value on a nonrecurring basis. As of December 31, 2024 and 2023, the nonfinancial assets and liabilities included our asset retirement and reclamation obligations, as well as assets and corresponding liabilities associated with performance guarantees. Asset retirement and reclamation obligations were measured using Level 3 inputs and performance guarantees were measured using Level 2 inputs.
Asset retirement and reclamation obligations were initially measured using internal discounted cash flow calculations based upon our estimates of future retirement costs. To determine the fair value of the obligation, we estimate the cost for a third-party to perform the legally required reclamation including a reasonable profit margin. This cost is then increased for future estimated inflation based on the estimated years to complete and discounted to fair value using present value techniques with a credit-adjusted, risk-free rate. In estimating the settlement date, we evaluate the current facts and conditions to determine the most likely settlement date. We review reclamation obligations at least annually for a revision to the cost or a change in the estimated settlement date. Additionally, reclamation obligations are reviewed in the period that a triggering event occurs that would result in either a revision to the cost or a change in the estimated settlement date. See Note 11 for details of the asset retirement obligation balances.
We estimate our liability for performance guarantees for our unconsolidated construction joint ventures and line item joint ventures using estimated partner bond rates, which are Level 2 inputs, and include them in accrued expenses and other
current liabilities (see Note 13) with a corresponding increase in equity in construction joint ventures in the consolidated balance sheets. See Note 1 for further discussion of performance guarantees.
During the years ended December 31, 2024 and 2023, we had no material nonfinancial asset and liability fair value adjustments.