Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019, December 31, 2018 and September 30, 2018:



(in thousands)	September 30, 2019
Assets (liabilities)	Level 1			Level 2			Level 3		Total
Commodity derivatives, net (a)	$	34,196		$	18,691		$	—	$	52,887
Provisionally priced contracts (b)	(79,757		)	(23,535		)	—		(103,292		)
Convertible preferred securities (c)	—			—			8,404		8,404
Other assets and liabilities (d)	5,603			(17,891		)	—		(12,288		)
Total	$	(39,958	)	$	(22,735	)	$	8,404	$	(54,289	)



(in thousands)	December 31, 2018
Assets (liabilities)	Level 1			Level 2			Level 3		Total
Commodity derivatives, net (a)	$	37,229		$	(18,864	)	$	—	$	18,365
Provisionally priced contracts (b)	(76,175		)	(58,566		)	—		(134,741		)
Convertible preferred securities (c)	—			—			7,154		7,154
Other assets and liabilities (d)	5,186			(353		)	—		4,833
Total	$	(33,760	)	$	(77,783	)	$	7,154	$	(104,389	)



(in thousands)	September 30, 2018
Assets (liabilities)	Level 1			Level 2			Level 3		Total
Commodity derivatives, net (a)	$	51,595		$	(67,919	)	$	—	$	(16,324	)
Provisionally priced contracts (b)	(55,697		)	(23,136		)	—		(78,833		)
Convertible preferred securities (c)	—			—			7,154		7,154
Other assets and liabilities (d)	5,988			193			—		6,181
Total	$	1,886		$	(90,862	)	$	7,154	$	(81,822	)


(a)	Includes associated cash posted/received as collateral.


(b)	Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2).


(c)	Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets.

(d)

Included in other assets and liabilities are assets held in rabbi trusts to fund deferred compensation plans, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1), and interest rate derivatives (Level 2).

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:



	Convertible Preferred Securities
(in thousands)	2019		2018
Assets (liabilities) at January 1,	$	7,154	$	7,388
Additional Investments	250		—
Assets (liabilities) at March 31,	$	7,404	$	7,388
Additional investments	1,000		100
Asset (liabilities) at June 30,	$	8,404	$	7,488
Gains (losses) included in earnings	—		5,080
Additional Investments	—		986
Sale proceeds	—		(6,400		)
Asset (liability) at September 30,	$	8,404	$	7,154

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, 2019, December 31, 2018 and September 30, 2018:



	Quantitative Information about Level 3 Fair Value Measurements
(in thousands)	Fair Value as of September 30, 2019		Valuation Method	Unobservable Input	Weighted Average
Convertible preferred securities (a)	$	8,404	Implied based on market prices	N/A	N/A



(in thousands)	Fair Value as of December 31, 2018		Valuation Method	Unobservable Input	Weighted Average
Convertible preferred securities (a)	$	7,154	Implied based on market prices	N/A	N/A



(in thousands)	Fair Value as of September 30, 2018		Valuation Method	Unobservable Input	Weighted Average
Convertible preferred securities (a)	$	7,154	Implied based on market prices	N/A	N/A

(a) The Company considers observable price changes and other additional market data available to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones, and other relevant market data points.

Fair value of long-term debt estimated using quoted market prices or discounted future cash flows

The fair value of the Company’s long-term debt is estimated using quoted market prices or discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. As such, the Company has concluded that the fair value of long-term debt is considered Level 2 in the fair value hierarchy.



(in thousands)	September 30, 2019		December 31, 2018		September 30, 2018
Fair value of long-term debt, including current maturities	$	1,046,063	$	517,998	$	445,342
Fair value in excess of carrying value (a)	11,047		5,813		11,629

(a) Carrying value used for this purpose excludes unamortized debt issuance costs.