Fair Value Measurements

3 Months Ended

Dec. 31, 2015

Note 8 — Fair Value Measurements

Derivative Instruments

The following table presents on a gross basis our derivative assets and liabilities including both current and noncurrent portions, that are measured at fair value on a recurring basis within the fair value hierarchy, as of December 31, 2015, September 30, 2015 and December 31, 2014:



	Asset (Liability)
	Level 1			Level 2			Level 3		Total
December 31, 2015:
Assets:
Commodity contracts	$	234		$	—		$	—	$	234
Interest rate contracts	$	—		$	572		$	—	$	572
Liabilities:
Commodity contracts	$	(4,986	)	$	(1,557	)	$	—	$	(6,543	)
Interest rate contracts	$	—		$	(4,380	)	$	—	$	(4,380	)
September 30, 2015:
Assets:
Commodity contracts	$	934		$	373		$	—	$	1,307
Liabilities:
Commodity contracts	$	(4,560	)	$	(1,388	)	$	—	$	(5,948	)
Interest rate contracts	$	—		$	(7,016	)	$	—	$	(7,016	)
December 31, 2014:
Assets:
Commodity contracts	$	—		$	177		$	—	$	177
Liabilities:
Commodity contracts	$	(7,355	)	$	(2,600	)	$	—	$	(9,955	)

The fair values of our Level 1 exchange-traded commodity futures and option derivative contracts are based upon actively-quoted market prices for identical assets and liabilities. The fair values of the remainder of our derivative financial instruments and electricity forward contracts, which are designated as Level 2, are generally based upon recent market transactions and related market indicators. There were no transfers between Level 1 and Level 2 during the periods presented.

Other Financial Instruments

The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because of their short-term nature. The carrying amount and estimated fair value of our long-term debt (including current maturities) at December 31, 2015, were $550,000 and $615,213, respectively. The carrying amount and estimated fair value of our long-term debt (including current maturities) at December 31, 2014, were $642,000 and $741,853, respectively. We estimate the fair value of long-term debt by using current market rates and by discounting future cash flows using rates available for similar types of debt (Level 2).

- 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.

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