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Note 10 - Fair value measurements
 3 Months Ended
Mar. 31, 2012
Fair Value Disclosures [Text Block]
10)          Fair value measurements

Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date.  Fair value accounting pronouncements also include a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.  Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of FutureFuel.  Unobservable inputs are inputs that reflect FutureFuel’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances.  The hierarchy is broken down into three levels.  Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.  Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.  Level 3 inputs are unobservable inputs for the asset or liability.  Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following tables provide information by level for assets and liabilities that are measured at fair value, on a recurring basis, at March 31, 2012 and December 31, 2011.

   
Asset/(Liability)
 
   
Fair Value at
March 31,
   
Fair Value Measurements Using
Inputs Considered as
 
Description
 
2012
   
Level 1
   
Level 2
   
Level 3
 
Derivative instruments
  $ (1,189 )   $ (1,189 )   $ -     $ -  
Preferred stock, trust preferred securities, municipal debt securities, and other equity instruments
  $ 68,194     $ 68,194     $ -     $ -  

   
Asset/(Liability)
 
   
Fair Value at
December 31,
   
Fair Value Measurements Using
Inputs Considered as
 
Description
 
2011
   
Level 1
   
Level 2
   
Level 3
 
Derivative instruments
  $ (2,453 )   $ (2,453 )   $ -     $ -  
Preferred stock, trust preferred securities, and other equity instruments
  $ 56,294     $ 56,294     $ -     $ -