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Fair Value Measurements
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value Measurements
(16) Fair Value Measurements

In accordance with FASB 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 or 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 December 31, 2017 and 2016:
 
December 31, 2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(in millions)
Location and Description
 
 
 
 
 
 
 
Cash equivalents
$
15.2

 
$
—

 
$
—

 
$
15.2

Other current assets (investments)
0.1

 
—

 
—

 
0.1

Total Assets
$
15.3

 
$
—

 
$
—

 
$
15.3

Other current liabilities (derivative agreements)
$
—

 
$
(64.3
)
 
$
—

 
$
(64.3
)
Other current liabilities (biofuel blending obligation)
—

 
(1.0
)
 
—

 
(1.0
)
Total Liabilities
$
—

 
$
(65.3
)
 
$
—

 
$
(65.3
)

 
December 31, 2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(in millions)
Location and Description
 
 
 
 
 
 
 
Cash equivalents
$
15.8

 
$
—

 
$
—

 
$
15.8

Other current assets (investments)
0.1

 
—

 
—

 
0.1

Total Assets
$
15.9

 
$
—

 
$
—

 
$
15.9

Other current liabilities (derivative agreements)
$
—

 
$
(11.1
)
 
$
—

 
$
(11.1
)
Other current liabilities (biofuel blending obligation & benzene obligation)
—

 
(187.0
)
 
—

 
(187.0
)
Total Liabilities
$
—

 
$
(198.1
)
 
$
—

 
$
(198.1
)


As of December 31, 2017 and 2016, the only financial assets and liabilities that are measured at fair value on a recurring basis are the Company's cash equivalents, investments, derivative instruments, uncommitted biofuel blending obligation and benzene obligations. Additionally, the fair value of the Company's debt issuances is disclosed in Note 11 ("Long-Term Debt"). The Refining Partnership's commodity derivative contracts, the uncommitted biofuel blending obligation and the benzene obligation, which use fair value measurements and are valued using broker quoted market prices of similar instruments, are considered Level 2 inputs. The Company had no transfers of assets or liabilities between any of the above levels during the year ended December 31, 2017.

In March 2016, CVR Energy purchased 400,000 CVR Nitrogen common units in the public market. During the first quarter of 2016, the fair value of the common units was based on quoted prices for the identical securities (Level 1 inputs). As a result of the East Dubuque Merger, the carrying amount of the investment in the CVR Nitrogen common units was reclassified as an investment in consolidated subsidiary and is eliminated in consolidation. Subsequent to the East Dubuque Merger, the Nitrogen Fertilizer Partnership purchased the 400,000 CVR Nitrogen common units from CVR Energy during the second quarter of 2016. During the year ended December 31, 2016, the Company purchased shares of an unaffiliated public company's common units in the public market at an aggregate cost basis of $14.4 million. During 2016, the Company received proceeds of $19.3 million for the sale of this investment in available-for-sale securities. Upon the sale of the available-for-sale securities, the Company reclassified an unrealized gain of $0.5 million from accumulated other comprehensive income ("AOCI") and recognized a realized gain of $4.9 million in other income in the Consolidated Statements of Operations for the year ended December 31, 2016.