Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Hierarchy Table for Assets and Liabilities Measured at Fair Value

We use a market approach for our recurring fair value measurements and endeavor to use the best information available. The following tables present the fair value hierarchy for assets and liabilities measured at fair value, on a recurring basis (in thousands):

	Fair Value Measurements at September 30, 2020 using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Carrying Value as of September 30, 2020
Trading securities held in the deferred compensation plans	$	56,859	$	—		$	—			$	56,859

Commodity price derivatives –swaps		—		(9,068	)		—				(9,068	)
–collars		—		(14,169	)		—				(14,169	)
–three-way collars		—		(39,883	)		—				(39,883	)
–basis swaps		—		4,871			—				4,871
–swaptions		—		—			(20,368	)			(20,368	)
Derivatives–freight swaps		—		(1,388	)		—				(1,388	)
Divestiture contingent consideration		—		15,420			—				15,420

	Fair Value Measurements at December 31, 2019 using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Carrying Value as of December 31, 2019
Trading securities held in the deferred compensation plans	$	62,009	$	—		$	—		$	62,009
Commodity price derivatives –swaps		—		131,886			—			131,886
–calls		—		(349	)		—			(349	)
–basis swaps		—		(4,732	)		—			(4,732	)
–swaptions		—		—			(4,848	)		(4,848	)
Derivatives–freight swaps		—		1,529			—			1,529

Reconciliation of the Beginning and Ending Balances for Derivative Instruments Classified as Level 3 in the Fair Value Hierarchy

We utilize a range of implied volatilities from 21% to 32% with a weighted average implied volatility of 26%. The following is a reconciliation of the beginning and ending balances for derivative instruments classified as Level 3 in the fair value hierarchy (in thousands):

	As of September 30, 2020
Balance at December 31, 2019	$	(4,848	)
Total losses:
Included in earnings		(19,124	)
Settlements, net		2,769
Transfers in and/or out of Level 3		835
Balance at September 30, 2020	$	(20,368	)

Value of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents the value of these assets measured at fair value on a nonrecurring basis at the time impairment was recorded (in thousands):

	Year Ended December 31, 2019
	Fair Value	Impairment
North Louisiana	$ 370,500	$ 1,093,531

Carrying Amounts and Fair Values of Financial Instruments

The following presents the carrying amounts and the fair values of our financial instruments as of September 30, 2020 and December 31, 2019 (in thousands):

	September 30, 2020						December 31, 2019
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets:
Commodity swaps, collars and basis swaps	$	4,906		$	4,906		$	137,554		$	137,554
Divestiture contingent consideration		15,420			15,420			—			—
Marketable securities ^(a)		56,859			56,859			62,009			62,009
(Liabilities):
Commodity swaps, collars and basis swaps		(84,911	)		(84,911	)		(14,068	)		(14,068	)
Bank credit facility ^(b)		(706,000	)		(706,000	)		(477,000	)		(477,000	)
5.75% senior notes due 2021 ^(b)		(25,496	)		(25,592	)		(374,139	)		(375,909	)
5.00% senior notes due 2022 ^(b)		(169,589	)		(163,558	)		(511,886	)		(501,582	)
5.875% senior notes due 2022 ^(b)		(48,528	)		(47,819	)		(297,617	)		(294,757	)
Other senior notes due 2022 ^(b)		(490	)		(482	)		(590	)		(592	)
5.00% senior notes due 2023 ^(b)		(532,335	)		(505,787	)		(741,531	)		(683,291	)
4.875% senior notes due 2025 ^(b)		(750,000	)		(676,425	)		(750,000	)		(645,098	)
9.25% senior notes due 2026 ^(b)		(850,000	)		(873,103	)		—			—
5.75% senior subordinated notes due 2021 ^(b)		(19,896	)		(19,477	)		(22,214	)		(21,539	)
5.00% senior subordinated notes due 2022 ^(b)		(9,730	)		(8,666	)		(19,054	)		(17,011	)
5.00% senior subordinated notes due 2023 ^(b)		(7,712	)		(7,127	)		(7,712	)		(7,654	)
Deferred compensation plan ^(c)		(84,538	)		(84,538	)		(74,472	)		(74,472	)

^(a)	Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges.

^(b)	The book value of our bank debt approximates fair value because of its floating rate structure. The fair value of our senior notes and our senior subordinated notes is based on end of period market quotes which are Level 2 inputs.

^(c)	The fair value of our deferred compensation plan is updated to the closing price on the balance sheet date which is a Level 1 input.