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Fair Value Measurements
 3 Months Ended
Mar. 31, 2013
Fair Value Measurements  
Fair Value Measurements

(12) Fair Value Measurements

        In accordance with ASC Topic 820—Fair Value Measurements and Disclosures ("ASC 820"), the Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities or a group of assets or liabilities, such as a business.

        ASC 820 utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

  • •
    Level 1—Quoted prices in active markets for identical assets and liabilities

    •
    Level 2—Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities)

    •
    Level 3—Significant unobservable inputs (including the Company's own assumptions in determining the fair value)

        The following table sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, as of March 31, 2013 and December 31, 2012:

 
   March 31, 2013  
 
   Level 1   Level 2   Level 3   Total  
 
   (in thousands)
  

Location and Description

                          

Cash equivalents

   $ 133,929   $ —   $ —   $ 133,929  

Other current assets (marketable securities)

     50     —     —     50  

Other current assets (other derivative agreements)

     —     —     —     —  

Other long-term assets (other derivative agreements)

     —     1,461     —     1,461  
                   

Total Assets

   $ 133,979   $ 1,461   $ —   $ 135,440  
                   

Other current liabilities (other derivative agreements)

     —     (35,781 )   —     (35,781 )

Other current liabilities (interest rate swap)

     —     (840 )   —     (840 )

Other current liabilities (other fair value measurements)

     —     (31,960 )   —     (31,960 )

Other long-term liabilities (other derivative agreements)

     —     —     —     —  

Other long-term liabilities (interest rate swap)

     —     (1,699 )   —     (1,699 )
                   

Total Liabilities

   $ —   $ (70,280 ) $ —   $ (70,280 )
                   

 

 
   December 31, 2012  
 
   Level 1   Level 2   Level 3   Total  
 
   (in thousands)
  

Location and Description

                          

Cash equivalents

   $ 133,897   $ —   $ —   $ 133,897  

Other current assets (marketable securities)

     38     —     —     38  

Other current assets (other derivative agreements)

     —     —     —     —  

Other long-term assets (other derivative agreements)

     —     938     —     938  
                   

Total Assets

   $ 133,935   $ 938   $ —   $ 134,873  
                   

Other current liabilities (other derivative agreements)

     —     (67,747 )   —     (67,747 )

Other current liabilities (interest rate swap)

     —     (861 )   —     (861 )

Other current liabilities (other fair value measurements)

     —     (1,072 )   —     (1,072 )

Other long-term liabilities (other derivative agreements)

     —     —     —     —  

Other long-term liabilities (interest rate swap)

     —     (1,890 )   —     (1,890 )
                   

Total Liabilities

   $ —   $ (71,570 ) $ —   $ (71,570 )
                   

        As of March 31, 2013 and December 31, 2012, the only financial assets and liabilities that are measured at fair value on a recurring basis are the Company's cash equivalents, available-for-sale marketable securities, derivative instruments and certain other current liabilities. Additionally, the fair value of the Company's debt issuances is disclosed in Note 8 ("Long-Term Debt"). The Refining Partnership's commodity derivative contracts and other current liabilities which use fair value measurements are valued using broker quoted market prices of similar instruments which are considered Level 2 inputs. The Nitrogen Fertilizer Partnership has an interest rate swap that is measured at fair value on a recurring basis using Level 2 inputs. The fair value of these interest rate swap instruments are based on discounted cash flow models that incorporate the cash flows of the derivatives, as well as the current LIBOR rate and a forward LIBOR curve, along with other observable market inputs. The Company's investments in marketable securities are classified as available-for-sale, and as a result, are reported at fair market value using quoted market prices. The Company had no transfers of assets or liabilities between any of the above levels during the three months ended March 31, 2013.