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Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Carrying Amount and Estimated Fair Value of Financial Instruments
The following tables present the carrying amount and estimated fair value of our financial instruments recognized at fair value on a recurring basis:
 
 
March 31, 2017
 
 
 
 
Estimated Fair Value Measurements
 
 
Carrying
Amount
 
Quoted
Prices in
Active
Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets -
 
 
 
 
 
 
 
 
Marketable securities
 
$
6,590

 
$
6,590

 
$
—

 
$
—

FCX Settlement
 
6,500

 
—

 
—

 
6,500

Liabilities -
 
 
 
 
 
 
 
 
Foreign currency forward contracts
 
$
110

 
$
—

 
$
110

 
$
—

 
 
December 31, 2016
 
 
 
 
Estimated Fair Value Measurements
 
 
Carrying
Amount
 
Quoted
Prices in
Active
Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets -
 
 
 
 
 
 
 
 
Marketable securities
 
$
6,246

 
$
6,246

 
$
—

 
$
—

FCX Settlement
 
$
14,400

 
$
—

 
$
—

 
$
14,400
Valuation Assumptions Using Carlo Simulation Model
The FCX Settlement has been valued using a Monte Carlo Simulation Model based on the following assumptions as of March 31, 2017:
Valuation assumptions:
 
 
Expected volatility
 
45.25
%
Mean-reversion rate
 
2.80

Discount rate (1)
 
2.5
%
Underlying spot price (2)
 
$
50.60

(1)
Based on the cost of debt of Freeport.
(2)
Based on the last trading price of the WTI spot contract from Bloomberg as of March 31, 2017.
Schedule of Activity Related to FCX Settlement Asset
The following table details the activity related to the FCX Settlement asset classified within Level 3 of the valuation hierarchy for the periods indicated:
Balance as of December 31, 2016
 
$
14,400

Change in fair value recognized in earnings
 
(7,900
)
Balance as of March 31, 2017
 
$
6,500