Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Measurements

Schedule of hierarchy of recurring fair value measurements

The Company’s recurring assets and liabilities measured at fair value were as follows (in millions):

	September 30, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Derivative assets:
Crack spread swaps	$	—	$	—	$	8.4	$	8.4	$	—	$	—	$	—	$	—
Total derivative assets	$	—	$	—	$	8.4	$	8.4	$	—	$	—	$	—	$	—
Pension plan investments	$	24.6	$	—	$	—	$	24.6	$	26.4	$	—	$	—	$	26.4
Total recurring assets at fair value	$	24.6	$	—	$	8.4	$	33.0	$	26.4	$	—	$	—	$	26.4
Liabilities:
Derivative liabilities:
Inventory financing obligation	$	—	$	—	$	(63.5)	$	(63.5)	$	—	$	—	$	(42.5)	$	(42.5)
Crack spread swaps		—		—		—		—		—		—		(31.3)		(31.3)
Total derivative liabilities	$	—	$	—	$	(63.5)	$	(63.5)	$	—	$	—	$	(73.8)	$	(73.8)
RINs obligation		—		(342.8)		—		(342.8)		—		(476.8)		—		(476.8)
Precious metals obligations		(6.3)		—		—		(6.3)		(7.5)		—		—		(7.5)
Liability awards		(65.2)		—		—		(65.2)		(52.9)		—		—		(52.9)
Total recurring liabilities at fair value	$	(71.5)	$	(342.8)	$	(63.5)	$	(477.8)	$	(60.4)	$	(476.8)	$	(73.8)	$	(611.0)

Summary of net changes in fair value of the Company's Level 3 financial assets and liabilities

The table below sets forth a summary of net changes in fair value of the Company’s Level 3 financial assets and liabilities (in millions):

	Nine Months Ended September 30,
	2023		2022
Fair value at January 1,	$	(73.8)	$	(27.9)
Realized loss on derivative instruments		(33.3)		(25.7)
Unrealized gain (loss) on derivative instruments		18.8		(47.5)
Settlements		33.3		25.7
Fair value at September 30,	$	(55.0)	$	(75.4)
Total gain (loss) included in net income (loss) attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of September 30,	$	18.8	$	(47.5)

Carrying value and estimated fair value of the Company's financial instruments, carried at adjusted historical cost

The Company’s carrying value and estimated fair value of the Company’s financial instruments, carried at adjusted historical cost, were as follows (in millions):

	September 30, 2023					December 31, 2022
	Level	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial Instrument:
2024 Secured Notes, 2025 Notes, 2027 Notes, and 2028 Notes	2	$	1,232.4	$	1,231.3	$	1,045.2	$	1,030.0
Revolving credit facility	3	$	71.1	$	68.6	$	104.0	$	100.9
MRL revolving credit agreement	3	$	—	$	(0.6)	$	—	$	(0.6)
MRL term loan credit agreement	3	$	74.6	$	71.7	$	—		—
Shreveport terminal asset financing arrangement	3	$	52.7	$	52.0	$	58.2	$	57.2
MRL asset financing arrangements	3	$	388.0	$	386.8	$	370.1	$	368.8
Finance leases and other obligations	3	$	3.0	$	3.0	$	3.4	$	3.4