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Fair Value Measurements
 9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Fair Value Measurements
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 September 30, 2013 and December 31, 2012:

 
September 30, 2013
 
Level 1

Level 2

Level 3

Total
 
(in millions)
Location and Description
 
 
 
 
 
 
 
Cash equivalents
$
81.0

 
$
—

 
$
—

 
$
81.0

Other current assets (other derivative agreements)
—

 
101.9

 
—

 
101.9

Other long-term assets (other derivative agreements)
—

 
8.2

 
—

 
8.2

Total Assets
$
81.0

 
$
110.1

 
$
—

 
$
191.1

Other current liabilities (interest rate swap)
—

 
(0.9
)
 
—

 
(0.9
)
Other long-term liabilities (interest rate swap)
—

 
(1.2
)
 
—

 
(1.2
)
Total Liabilities
$
—

 
$
(2.1
)
 
$
—

 
$
(2.1
)

 
December 31, 2012
 
  Level 1
 
  Level 2
 
  Level 3
 
    Total
 
(in millions)
Location and Description
 
 
 
 
 
 
 
Cash equivalents
$
134.0

 
$
—

 
$
—

 
$
134.0

Other long-term assets (other derivative agreements)
—

 
0.9

 
—

 
0.9

Total Assets
$
134.0

 
$
0.9

 
$
—

 
$
134.9

Other current liabilities (other derivative agreements)
—

 
(67.7
)
 
—

 
(67.7
)
Other current liabilities (interest rate swap)
—

 
(0.9
)
 
—

 
(0.9
)
Other current liabilities (biofuel blending obligation)
—

 
(1.1
)
 
—

 
(1.1
)
Other long-term liabilities (interest rate swap)
—

 
(1.9
)
 
—

 
(1.9
)
Total Liabilities
$
—

 
$
(71.6
)
 
$
—

 
$
(71.6
)


As of September 30, 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, derivative instruments and the uncommitted biofuel blending obligation. 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 the uncommitted biofuel blending obligation which use fair value measurements are valued using broker quoted market prices of similar instruments which are considered Level 2 inputs. As of September 30, 2013, the Refining Partnership's biofuel blending obligation was fully committed. 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. During the three months ended September 30, 2013, the Company received proceeds of $24.7 million for the sale of its investments in marketable securities, which were previously classified as available-for-sale and reported at fair market value using quoted market prices. The aggregate cost basis for the available-for-sale securities sold was approximately $18.6 million. Upon the sale of the available-for-sale securities, the Company reclassified the unrealized gain of $6.1 million from accumulated other comprehensive income and recognized a realized gain in other income for the three and nine months ended September 30, 2013. As of September 30, 2013, the Company does not hold any further investments in available-for-sale securities. The Company had no transfers of assets or liabilities between any of the above levels during the nine months ended September 30, 2013.