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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of estimated fair value of outstanding commodity swap contracts and embedded derivatives

The Company estimated the fair value of its outstanding commodity swap contracts based on the following inputs as of December 31, 2019 and June 30, 2020:


	December 31, 2019			June 30, 2020
Significant Unobservable Inputs	Input Range	Weighted Average		Input Range	Weighted Average
ULSD Gulf Coast Forward Curve	$1.76 - $1.88	$	1.81	$1.30 - $1.47	$	1.40
Historical Differential to PADD 3 Diesel	$0.79 - $1.16	$	0.91	$0.80 - $1.58	$	0.96
Historical Differential to PADD 5 Diesel	$1.32 - $2.30	$	1.78	$1.32 - $2.58	$	1.92

The Company estimated the fair value of embedded derivatives in its fueling agreements under the Zero Now truck financing program based on the following inputs as of December 31, 2019 and June 30, 2020:


	December 31, 2019			June 30, 2020
Significant Unobservable Inputs	Input Range	Weighted Average		Input Range	Weighted Average
ULSD Gulf Coast Forward Curve	$1.76 - $1.88	$	1.81	$1.30 - $1.47	$	1.40
Historical Differential to PADD 3 Diesel	$0.79 - $1.16	$	0.91	$0.80 - $1.58	$	0.96
Historical Differential to PADD 5 Diesel	$1.32 - $2.30	$	1.78	$1.32 - $2.58	$	1.92

Schedule of information by level for assets and liabilities that are measured at fair value on a recurring basis

The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2019 and June 30, 2020:


	December 31, 2019		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities ⁽¹⁾:
Municipal bonds and notes	$	2,986	$	—	$	2,986	$	—
Zero coupon bonds		33,919		—		33,919		—
Corporate bonds		19,506		—		19,506		—
Certificates of deposit ⁽¹⁾		518		—		518		—
Commodity swap contracts ⁽²⁾		3,270		—		—		3,270
Embedded derivatives ⁽³⁾		723		—		—		723
Liabilities:
Commodity swap contracts ⁽²⁾	$	164	$	—	$	—	$	164
Embedded derivatives ⁽³⁾		81		—		—		81
Warrants ⁽⁴⁾		40		—		—		40


	June 30, 2020		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities ⁽¹⁾:
Zero coupon bonds	$	13,997	$	—	$	13,997	$	—
Corporate bonds		2,002		—		2,002		—
Certificates of deposit ⁽¹⁾		530		—		530		—
Commodity swap contracts ⁽²⁾		9,743		—		—		9,743
Embedded derivatives ⁽³⁾		94		—		—		94
Liabilities:
Embedded derivatives ⁽³⁾	$	1,924	$	—	$	—	$	1,924
Warrants ⁽⁴⁾		—		—		—		—

(1)	Included in "Short-term investments" in the accompanying condensed consolidated balance sheets. See Note 5 for more information.

(2)

Included in “Derivative liabilities, related party” and "Long-term portion of derivative assets, related party’ as of December 31, 2019, and "Derivative assets, related party" and "Long-term portion of derivative assets, related party" as of June 30, 2020, in the accompanying condensed consolidated balance sheets. See Note 6 for more information.

(3)	Included in "Prepaid expenses and other current assets", “Notes receivable and other long-term assets, net", “Accrued liabilities” and “Other long-term liabilities” in the accompanying condensed consolidated balance sheets. See Note 6 for more information.

(4)	Included in "Accrued liabilities" in the accompanying condensed consolidated balance sheets. The warrants expired on July 2, 2020.

Schedule of reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3)

The following tables provide a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis as shown in the tables above that used significant unobservable inputs (Level 3), as well as the change in unrealized gains or losses for the periods included in earnings (in thousands):


	Assets:		Assets:		Liabilities:		Liabilities:
	Commodity		Embedded		Commodity		Embedded		Liabilities:
	Swap Contracts		Derivatives		Swap Contracts		Derivatives		Warrants
Balance as of March 31, 2019	$	5,362	$	—	$	—	$	—	$	(2,693)
Settlements, net		209		—		—		—		—
Total gain (loss)		125		450		—		—		17
Balance as of June 30, 2019	$	5,696	$	450	$	—	$	—	$	(2,676)

Balance as of March 31, 2020	$	12,545	$	143	$	—	$	(3,308)	$	(445)
Settlements, net		(453)		—		—		—		—
Total gain (loss)		(2,349)		(49)		—		1,384		445
Balance as of June 30, 2020	$	9,743	$	94	$	—	$	(1,924)	$	—

Change in unrealized gain (loss) for the three months ended June 30, 2019 included in earnings	$	334	$	450	$	—	$	—	$	17
Change in unrealized gain (loss) for the three months ended June 30, 2020 included in earnings	$	(2,802)	$	(49)	$	—	$	1,384	$	445


	Assets:		Assets:		Liabilities:		Liabilities:
	Commodity		Embedded		Commodity		Embedded		Liabilities:
	Swap Contracts		Derivatives		Swap Contracts		Derivatives		Warrants
Balance as of December 31, 2018	$	10,332	$	—	$	—	$	—	$	(1,079)
Settlements, net		209		—		—		—		—
Total gain (loss)		(4,845)		450		—		—		(1,597)
Balance as of June 30, 2019	$	5,696	$	450	$	—	$	—	$	(2,676)

Balance as of December 31, 2019	$	3,270	$	723	$	(164)	$	(81)	$	(40)
Settlements, net		(477)		—		56		—		—
Total gain (loss)		6,950		(629)		108		(1,843)		40
Balance as of June 30, 2020	$	9,743	$	94	$	—	$	(1,924)	$	—

Change in unrealized gain (loss) for the six months ended June 30, 2019 included in earnings	$	(4,636)	$	450	$	—	$	—	$	(1,597)
Change in unrealized gain (loss) for the six months ended June 30, 2020 included in earnings	$	6,473	$	(629)	$	164	$	(1,843)	$	40