The company measures the fair value of its derivative portfolio by using the price that would be received to sell an asset or paid to transfer a liability in the principal market for that asset or liability. These measurements are classified into a hierarchy by the inputs used to perform the fair value calculation as follows:

The company enters into commodity derivatives designated as cash-flow hedges of existing or future exposure to changes in commodity prices. The company’s primary raw materials are flour, sweeteners and shortening, along with pulp, paper and petroleum-based packaging products. Natural gas, which is used as oven fuel, and diesel fuel are also important commodity inputs.

As of April 20, 2019, the company’s hedge portfolio contained commodity derivatives, which are recorded in the following accounts with fair values measured as indicated (amounts in thousands):

	Level 1			Level 2		Level 3		Total
Liabilities:
Other current		(20,570	)		—		—		(20,570	)
Other long-term		(2,098	)		—		—		(2,098	)
Total		(22,668	)		—		—		(22,668	)
Net Fair Value	$	(22,668	)	$	—	$	—	$	(22,668	)

As of December 29, 2018, the company’s hedge portfolio contained commodity derivatives, which are recorded in the following accounts with fair values measured as indicated (amounts in thousands):

	Level 1			Level 2		Level 3		Total
Assets:
Other current	$	501		$	—	$	—	$	501
Other long-term		—			—		—		—
Total		501			—		—		501

Liabilities:
Other current		(7,732	)		—		—		(7,732	)
Other long-term		(1,203	)		—		—		(1,203	)
Total		(8,935	)		—		—		(8,935	)
Net Fair Value	$	(8,434	)	$	—	$	—	$	(8,434	)

The positions held in the portfolio are used to hedge economic exposure to changes in various raw material prices and effectively fix, or limit increases in, prices for a period of time extending into fiscal 2021. These instruments are designated as cash-flow hedges. The change in the fair value for these derivatives is reported in AOCI. All the company-held commodity derivatives at April 20, 2019 and December 29, 2018, respectively, qualified for hedge accounting.

The company previously entered into treasury rate locks at the time we executed the 2022 and 2026 notes. These rate locks were designated as a cash flow hedge and the fair value at termination was deferred in AOCI. The deferred amount reported in AOCI is being reclassified to interest expense as interest payments are made on the related notes through the maturity date.

The company has the following derivative instruments located on the Condensed Consolidated Balance Sheets, which are utilized for the risk management purposes detailed above (amounts in thousands):

	Derivative Assets						Derivative Liabilities
	April 20, 2019			December 29, 2018			April 20, 2019			December 29, 2018
Derivatives Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity contracts	Other current assets	$	—	Other current assets	$	501	Other accrued liabilities	$	20,570	Other accrued liabilities	$	7,732
Commodity contracts	Other assets		—	Other assets		—	Other long-term liabilities		2,098	Other long-term liabilities		1,203
Total		$	—		$	501		$	22,668		$	8,935

The company had the following derivative instruments for deferred gains and (losses) on closed contracts and the effective portion for changes in fair value recorded in AOCI (no amounts were excluded from the effectiveness test), all of which are utilized for the risk management purposes detailed above (amounts in thousands and net of tax):

	Amount of Gain or (Loss)						Amount of (Gain) or Loss
	Recognized in AOCI on Derivatives						Reclassified from AOCI
	(Effective Portion)					Location of (Gain) or Loss	into Income (Effective Portion)
Derivatives in Cash Flow	For the Sixteen Weeks Ended					Reclassified from AOCI	For the Sixteen Weeks Ended
Hedge Relationships(1)	April 20, 2019			April 21, 2018		into Income (Effective Portion)(2)	April 20, 2019			April 21, 2018
Interest rate contracts	$	—		$	—	Interest expense	$	33		$	33
Commodity contracts		(9,593	)		10,470	Production costs(3)		(2,211	)		264
Total	$	(9,593	)	$	10,470		$	(2,178	)	$	297

There was no hedging ineffectiveness, and no amounts were excluded from the ineffectiveness testing, during the sixteen weeks ended April 20, 2019 and April 21, 2018, respectively, related to the company’s commodity risk hedges.

At April 20, 2019, the balance in AOCI related to commodity price risk and interest rate risk derivative transactions that closed or will expire over the following years are as follows (amounts in thousands and net of tax) (amounts in parenthesis indicate a debit balance):

	Commodity Price Risk Derivatives			Interest Rate Risk Derivatives		Totals
Closed contracts	$	990		$	48	$	1,038
Expiring in 2019		(14,036	)		—		(14,036	)
Expiring in 2020		(2,854	)		—		(2,854	)
Expiring in 2021		(54	)		—		(54	)
Total	$	(15,954	)	$	48	$	(15,906	)

As of April 20, 2019, the company had the following outstanding financial contracts that were entered to hedge commodity risk (amounts in thousands):

The company’s derivative instruments contain no credit-risk related contingent features at April 20, 2019. As of April 20, 2019 and December 29, 2018, the company had $29.9 million and $15.4 million, respectively, in other current assets representing collateral for hedged positions. There were no amounts representing collateral recorded in other accrued liabilities for hedged positions as of April 20, 2019 and December 29, 2018.