| Assets and liabilities measured at fair value on a recurring basis |
The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2014, December 31, 2013 and September 30, 2013: | | | | | | | | | | | | | | | | | (in thousands) | September 30, 2014 | Assets (liabilities) | Level 1 | | Level 2 | | Level 3 | | Total | Cash equivalents | $ | 85,663 |
| | $ | — |
| | $ | — |
| | $ | 85,663 |
| Restricted cash | 173 |
| | — |
| | — |
| | 173 |
| Commodity derivatives, net (a) | 32,606 |
| | (159,295 | ) | | — |
| | (126,689 | ) | Convertible preferred securities (b) | — |
| | — |
| | 15,000 |
| | 15,000 |
| Other assets and liabilities (c) | 10,671 |
| | (1,636 | ) | | — |
| | 9,035 |
| Total | $ | 129,113 |
| | $ | (160,931 | ) | | $ | 15,000 |
| | $ | (16,818 | ) |
| | | | | | | | | | | | | | | | | (in thousands) | December 31, 2013 | Assets (liabilities) | Level 1 | | Level 2 | | Level 3 | | Total | Cash equivalents | $ | 97,751 |
| | $ | — |
| | $ | — |
| | $ | 97,751 |
| Restricted cash | 408 |
| | — |
| | — |
| | 408 |
| Commodity derivatives, net (a) | 50,777 |
| | (49,810 | ) | | — |
| | 967 |
| Convertible preferred securities (b) | — |
| | — |
| | 25,720 |
| | 25,720 |
| Other assets and liabilities (c) | 10,143 |
| | (159 | ) | | — |
| | 9,984 |
| Total | $ | 159,079 |
| | $ | (49,969 | ) | | $ | 25,720 |
| | $ | 134,830 |
|
| | | | | | | | | | | | | | | | | (in thousands) | September 30, 2013 | Assets (liabilities) | Level 1 | | Level 2 | | Level 3 | | Total | Cash equivalents | $ | 90,093 |
| | $ | — |
| | $ | — |
| | $ | 90,093 |
| Restricted cash | 164 |
| | — |
| | — |
| | 164 |
| Commodity derivatives, net (a) | 62,560 |
| | (55,035 | ) | | — |
| | 7,525 |
| Convertible preferred securities (b) | — |
| | — |
| | 17,710 |
| | 17,710 |
| Other assets and liabilities (c) | 9,539 |
| | (1,045 | ) | | — |
| | 8,494 |
| Total | $ | 162,356 |
| | $ | (56,080 | ) | | $ | 17,710 |
| | $ | 123,986 |
|
| | (a) | Includes associated cash posted/received as collateral |
| | (b) | Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets |
| | (c) | Included in other assets and liabilities are interest rate and foreign currency derivatives and swaptions (Level 2) and deferred compensation assets (Level 1) |
|
| Beginning and ending balances for the Company's fair value measurements using Level 3 inputs |
A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows: | | | | | | | | | | 2014 | | 2013 | (in thousands) | Convertible preferred securities |
| Convertible preferred securities | Asset at January 1, | $ | 25,720 |
| | $ | 17,220 |
| Unrealized gains (losses) included in other comprehensive income (a) | (5,190 | ) | | 490 |
| Asset at March 31, | 20,530 |
| | 17,710 |
| Unrealized gains (losses) included in other comprehensive income (a) | (3,580 | ) | | — |
| Asset at June 30, | 16,950 |
| | 17,710 |
| Unrealized gains (losses) included in other comprehensive income | (1,950 | ) | | — |
| Asset at September 30, | $ | 15,000 |
| | $ | 17,710 |
|
(a) The decrease in value from year end is due primarily to reductions in forecasted traffic on the railroad |
| Fair Value Inputs, Assets, Quantitative Information |
The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of September 30, 2014, December 31, 2013 and September 30, 2013: | | | | | | | | | | | | | | | | | | Quantitative Information about Level 3 Fair Value Measurements | (in thousands) | | | | | | | Range | | | | Fair Value as of September 30, 2014 | | Valuation Method | | Unobservable Input | | Low | | High | | Weighted Average | Convertible Preferred Securities | $ | 15,000 |
| | Market Approach | | EBITDA Multiples | | 7.08 |
| | 10.02 |
| | 8.35 |
| | | | Income Approach | | Discount Rate | | 14.5 | % | | 14.5 | % | | 14.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | Range | | | (in thousands) | Fair Value as of December 31, 2013 | | Valuation Method | | Unobservable Input | | Low | | High | | Weighted Average | Convertible Preferred Securities | $ | 25,720 |
| | Market Approach | | EBITDA Multiples | | 7.50 |
| | 8.00 |
| | 7.75 |
| | | | Income Approach | | Discount Rate | | 14.5 | % | | 14.5 | % | | 14.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | Range | | | (in thousands) | Fair Value as of September 30, 2013 | | Valuation Method | | Unobservable Input | | Low | | High | | Weighted Average | Convertible Preferred Securities | $ | 17,710 |
| | Market Approach | | EBITDA Multiples | | 5.50 |
| | 7.00 |
| | 6.60 |
| | | | Income Approach | | Discount Rate | | 17.0 | % | | 17.0 | % | | 17.0 | % |
|
| Fair value of long-term debt estimated using quoted market prices or discounted future cash flows |
| | | | | | | | | | | | | (in thousands) | September 30,
2014 |
| December 31,
2013 | | September 30,
2013 | Fair value of long-term debt, including current maturities | $ | 369,000 |
| | $ | 429,723 |
| | $ | 428,726 |
| Fair value in excess of carrying value | 2,795 |
| | 2,512 |
| | 3,476 |
|
|