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Note 8 - Fair Value of Assets and Liabilities | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Fair Value Disclosures [Text Block] |
8. | Fair Value of Assets and Liabilities:
The Company’s financial instruments include cash and cash equivalents, short-term trade receivables, derivative instruments, accounts payable and debt instruments. For short-term instruments, other than those required to be reported at fair value on a recurring basis and for which additional disclosures are included below, management concluded the historical carrying value is a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization. During 2016 and 2015, there were no transfers of financial assets between Levels 1, 2 or 3 fair value measurements. There have been no changes in the methodologies used at December 31, 2016 and December 31, 2015. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value as of December 31, 2016 and December 31, 2015: Metals swaps and embedded customer derivatives – Determined by using Level 2 inputs that include the price of nickel indexed to the LME and the price of Hot Rolled Coil Steel indexed to the NYMEX. The fair value is determined based on quoted market prices and reflects the estimated amounts the Company would pay or receive to terminate the nickel swaps. Interest rate swap – Based on the present value of the expected future cash flows, considering the risks involved, and using discount rates appropriate for the maturity date. Market observable Level 2 inputs are used to determine the present value of future cash flows. The following table presents information about the Company’s assets and liabilities that were measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company:
|  | Value of Items Recorded at Fair Value |
|  | As of December 31, 2016 |
(in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Embedded customer derivatives |  | $ | - |  |  | $ | 113 |  |  | $ | - |  |  | $ | 113 |
Total assets at fair value |  | $ | - |  |  | $ | 113 |  |  | $ | - |  |  | $ | 113 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Metals swaps |  | $ | - |  |  | $ | 113 |  |  | $ | - |  |  | $ | 113 |
Interest rate swap (CTI) |  |  | - |  |  |  | 36 |  |  |  | - |  |  |  | 36 |
Total liabilities recorded at fair value |  | $ | - |  |  | $ | 149 |  |  | $ | - |  |  | $ | 149 |
|  | Value of Items Not Recorded at Fair Value |
|  | As of December 31, 2016 |
(in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IRB |  | $ | 1,825 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,825 |
ABL Credit Facility |  |  | - |  |  |  | 164,599 |  |  |  | - |  |  |  | 164,599 |
Total liabilities not recorded at fair value |  | $ | 1,825 |  |  | $ | 164,599 |  |  | $ | - |  |  | $ | 166,424 |
The value of the items not recorded at fair value represent the carrying value of the liabilities.
|  | Value of Items Recorded at Fair Value |
|  | As of December 31, 2015 |
(in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Embedded customer derivatives |  | $ | - |  |  | $ | 384 |  |  | $ | - |  |  | $ | 384 |
Total assets at fair value |  | $ | - |  |  | $ | 384 |  |  | $ | - |  |  | $ | 384 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Metals swaps |  | $ | - |  |  | $ | 384 |  |  | $ | - |  |  | $ | 384 |
Interest rate swap (CTI) |  |  | - |  |  |  | 102 |  |  |  | - |  |  |  | 102 |
Fixed interest rate swap (ABL) |  |  | - |  |  |  | 114 |  |  |  | - |  |  |  | 114 |
Total liabilities recorded at fair value |  | $ | - |  |  | $ | 600 |  |  | $ | - |  |  | $ | 600 |
|  | Value of Items Not Recorded at Fair Value |
|  | As of December 31, 2015 |
(in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IRB |  | $ | 2,690 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,690 |
ABL Credit Facility |  |  | - |  |  |  | 145,800 |  |  |  | - |  |  |  | 145,800 |
Total liabilities not recorded at fair value |  | $ | 2,690 |  |  | $ | 145,800 |  |  | $ | - |  |  | $ | 148,490 |
The value of the items not recorded at fair value represent the carrying value of the liabilities. The fair value of the IRB is determined using Level 1 inputs. The carrying value and the fair value of the IRB that qualify as financial instruments were $1.8 million and $2.7 million at December 31, 2016 and 2015, respectively. The fair value of the ABL Credit Facility is determined using Level 2 inputs. The carrying value of the ABL Credit Facility was $164.6 million and $145.8 million at December 31, 2016 and 2015, respectively. The Level 2 fair value of the Company's long-term debt was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
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