XML 43 R28.htm IDEA: XBRL DOCUMENT

Note 20 - Fair Value Measurements and Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Fair Value Disclosures [Text Block]

20. Fair Value Measurements and Fair Value of Financial Instruments

The carrying value and fair value, by fair value hierarchy, of the Company's financial instruments at December 31, 2021 and 2020 are as follows (in thousands):

						Fair Value Measurements at December 31, 2021
		Fair Value at December 31, 2021				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Recurring
Marketable securities
U.S. Treasury notes		$	225,792			$	225,792			$	—			$	—
U.S. Government sponsored enterprise securities			113,944				113,944				—				—

Other
Liability-classified restricted stock awards			702				702				—				—

Total recurring		$	340,438			$	340,438			$	—			$	—

Nonrecurring
Corn and palladium inventory		$	566			$	566			$	—			$	—

						Fair Value Measurements at December 31, 2020
		Fair Value at December 31, 2020				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)

Nonrecurring
Finished goods inventory		$	866			$	235			$	631			$	—

The following table summarizes the Company's investments in marketable securities as of December 31, 2021 (none at December 31, 2020) (in thousands):

	Maturity		Amortized Cost Basis				Gross Unrealized Losses				Fair Value
Short-term marketable securities
U.S. Treasury notes	Within one year		$	226,136			$	(344	)		$	225,792
U.S. Government-sponsored enterprise securities	Within one year			49,618				(70	)			49,548

Total			$	275,754			$	(414	)		$	275,340

Long-term marketable securities
U.S. Government-sponsored enterprise securities	Within two years		$	64,596			$	(200	)		$	64,396

There were no transfers between Level 1 and Level 2 inputs. There were no transfers in or out of Level 3 inputs. There were no issuances, purchases, sales or settlements of Level 3 inputs during the year ended December 31, 2021 or 2020.

For the 2021 Bonds, the fair values are estimated using the Black-Derman-Toy interest rate lattice framework. The carrying values and estimated fair values of the 2021 bonds as of December 31, 2021 are summarized as follows:

	Carrying Value				Estimated Fair Value

2021 Bonds	$	68,155			$	68,380

Fair Value Methodology

Inventories. The Company records its corn and palladium inventory at net realizable value only when the Company’s cost of corn and palladium purchased exceeds the market value for corn. The Company determines the market value of corn and palladium based upon Level 1 inputs using quoted market prices.

Marketable Securities. The Company's investments in marketable securities are stated at fair value and are available-for-sale.

The Company has not elected the fair value option for any of its instruments.

While the Company believes that its valuation methods are appropriate and consistent with other market participants, it recognizes that the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

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.

+ References + Details