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Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements
5. Fair Value Measurements
The carrying amounts of cash and cash equivalents, net accounts receivable, accounts payable and accrued expenses and other current liabilities approximate fair value based on their short-term maturities. With the exception of the Convertible Notes, as discussed in Note 8. Debt, Interest Income, Expense, and Other Finance Costs, the carrying values of our debt and notes receivable approximate fair value as these instruments bear interest either at variable rates or fixed rates, which are not significantly different from market rates. The fair value measurements for our debt and notes receivable are considered to be Level 2 measurements based on the fair value hierarchy.
Recurring Fair Value Measurements
The following tables present information about our gross assets and liabilities that are measured at fair value on a recurring basis (in millions):
Fair Value Measurements as of December 31, 2024
Level 1 InputsLevel 2 InputsLevel 3 InputsTotal Fair Value
Assets:
Commodities contracts$157.4 $300.8 $9.4 $467.6 
Interest rate contract— 2.9 — 2.9 
Foreign currency contracts— 29.1 — 29.1 
Cash surrender value of life insurance— 20.0 — 20.0 
Total assets at fair value$157.4 $352.8 $9.4 $519.6 
Liabilities:
Commodities contracts$165.9 $209.1 $3.7 $378.7 
Foreign currency contracts— 22.9 — 22.9 
Total liabilities at fair value$165.9 $232.0 $3.7 $401.6 
Fair Value Measurements as of December 31, 2023
Level 1 InputsLevel 2 InputsLevel 3 InputsTotal Fair Value
Assets:
Commodities contracts$220.0 $560.2 $11.6 $791.8 
Interest rate contract— 14.8 — 14.8 
Foreign currency contracts— 34.1 — 34.1 
Cash surrender value of life insurance— 16.5 — 16.5 
Total assets at fair value$220.0 $625.6 $11.6 $857.3 
Liabilities:
Commodities contracts$322.1 $345.3 $1.8 $669.1 
Foreign currency contracts— 28.7 — 28.7 
Total liabilities at fair value$322.1 $373.9 $1.8 $697.8 
For our derivative contracts, we may enter into master netting, collateral and offset agreements with counterparties. These agreements provide us the ability to offset a counterparty's rights and obligations, request additional collateral when necessary, or liquidate the collateral in the event of counterparty default. We net the fair value of cash collateral paid or received against fair value amounts recognized for net derivative positions executed with the same counterparty under the same master netting or offset agreement.
We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of offset exists. The following tables summarize those derivative balances subject to the right of offset as presented on our Consolidated Balance Sheets (in millions):
Fair Value as of December 31, 2024
Gross Amounts RecognizedGross Amounts OffsetNet Amounts PresentedCash CollateralGross Amounts Without Right of OffsetNet Amounts
Assets:
Commodities contracts$467.6 $253.2 $214.4 $0.1 $— $214.3 
Interest rate contract2.9 — 2.9 — — 2.9 
Foreign currency contracts29.1 20.7 8.5 — — 8.5 
Total assets at fair value$499.6 $273.9 $225.8 $0.1 $— $225.6 
Liabilities:
Commodities contracts$378.7 $253.2 $125.5 $12.1 $— $113.4 
Foreign currency contracts22.9 20.7 2.3 — — 2.3 
Total liabilities at fair value$401.6 $273.9 $127.8 $12.1 $— $115.6 
Fair Value as of December 31, 2023
Gross Amounts RecognizedGross Amounts OffsetNet Amounts PresentedCash CollateralGross Amounts Without Right of OffsetNet Amounts
Assets:
Commodities contracts$791.8 $399.0 $392.8 $45.2 $— $347.7 
Interest rate contract14.8 — 14.8 — — 14.8 
Foreign currency contracts34.1 19.1 15.0 — — 15.0 
Total assets at fair value$840.7 $418.0 $422.7 $45.2 $— $377.5 
Liabilities:
Commodities contracts$669.1 $399.0 $270.1 $100.5 $— $169.7 
Foreign currency contracts28.7 19.1 9.6 — — 9.6 
Total liabilities at fair value$697.8 $418.0 $279.7 $100.5 $— $179.2 
At December 31, 2024 and 2023, we did not present any amounts gross on our Consolidated Balance Sheets where we had the right to offset.
Concentration of Credit Risk
Our individual over-the-counter ("OTC") counterparty exposure is managed within predetermined credit limits and includes the use of cash-call margins when appropriate, thereby reducing the risk of significant nonperformance. At December 31, 2024, two of our counterparties with a total exposure of $36.2 million represented over 10% of our credit exposure to OTC derivative counterparties, for which we held cash collateral of $6.7 million.
Nonrecurring Fair Value Measurements
During the fourth quarter of 2023, we identified an other-than-temporary impairment indicator with respect to an equity method investment in a non-core business due to the inability of the investee to sustain an earning capacity at its pre-pandemic levels. At that time, the investment was written down to its fair value of $19.1 million (15.0 million GBP) as of December 31, 2023, resulting in the recognition of an impairment loss of $14.1 million during the three months ended December 31, 2023. During the fourth quarter of 2024, we identified an impairment indicator with respect to the same investment, as the investee continues to incur operating losses and has been unable to achieve
expected results. The fair value of the investment was determined to be nominal and as a result the full carrying amount of the investment was impaired. An impairment loss of $18.2 million was recognized during the three months ended December 31, 2024. The impairment losses recognized during 2024 and 2023 are recorded within Asset impairments on the Consolidated Statements of Income and Comprehensive Income and reported in our corporate segment. The fair value of the investment was measured in each period using a combination of an income approach based on estimated future cash flows available to us as of the measurement dates and a market approach using a selection of global companies comparable with the operations of the investee to derive market-based multiples. Due to the significance of unobservable inputs, the measurements are categorized as Level 3.
During the fourth quarter of 2023, we also identified an impairment indicator with respect to one of our investee's, accounted for as a cost method investment, which we were notified is not able to raise capital and therefore intends to restructure its operations. As a result, the fair value of the investment was determined to be nominal and the investment was fully impaired. An impairment loss of $5.0 million was recognized during the three months ended December 31, 2023 and is recorded within Asset impairments on the Consolidated Statements of Income and Comprehensive Income and reported in our corporate segment. Due to the significance of unobservable inputs, the measurement is categorized as Level 3.
In addition, during the fourth quarter of 2023, we identified an impairment indicator with respect to an asset group within the land segment. We determined that the carrying amount was not recoverable and recognized an asset impairment charge of $2.2 million during the year ended December 31, 2023. The impairment is recorded within Asset impairments on the Consolidated Statements of Income and Comprehensive Income and reported in our land segment. The fair value of the asset group was measured using an income approach based on estimated future cash flows as of the measurement date. Due to the significance of unobservable inputs, the measurements are categorized as Level 3.