Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Assets and liabilities measured at fair value on a recurring basis

The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis at December 31, 2015 and 2014:



(in thousands)	December 31, 2015
Assets (liabilities)	Level 1			Level 2			Level 3		Total
Cash equivalents	$	26,931		$	—		$	—	$	26,931
Restricted cash	450			—			—		450
Commodity derivatives, net (a)	26,890			(15,101		)	—		11,789
Provisionally priced contracts (b)	(133,842		)	(103,148		)	—		(236,990		)
Convertible preferred securities (c)	—			—			13,550		13,550
Other assets and liabilities (d)	8,635			(3,324		)	350		5,661
Total	$	(70,936	)	$	(121,573	)	$	13,900	$	(178,609	)



(in thousands)	December 31, 2014
Assets (liabilities)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	269	$	—		$	—	$	269
Restricted cash	429		—			—		429
Commodity derivatives, net (a)	72,868		(46,983		)	—		25,885
Provisionally priced contracts (b)	—		(92,220		)	—		(92,220		)
Convertible preferred securities (c)	—		—			13,300		13,300
Other assets and liabilities (d)	10,869		(2,666		)	—		8,203
Total	$	84,435	$	(141,869	)	$	13,300	$	(44,134	)


(a)	Includes associated cash posted/received as collateral


(b)	Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2).


(c)	Recorded in “Other noncurrent assets” on the Company’s Consolidated Balance Sheets at December 31, 2014.


(d)	Included in other assets and liabilities are deferred compensation assets and ethanol risk management contracts (Level 1), interest rate derivatives (Level 2) and contingent consideration to the former owners of Kay Flo Industries, Inc (Level 3)

Beginning and ending balances for the Company's fair value measurements using Level 3 inputs

A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows:



	Convertible Preferred Securities
(in thousands)	2015			2014
Asset at January 1,	$	13,300		$	25,720
New agreements	750			—
Sales proceeds	(992		)	—
(Losses) gains included in earnings	492			—
Unrealized (losses) gains included in other comprehensive income	—			(12,420		)
Asset at December 31,	$	13,550		$	13,300

Fair Value Inputs, Assets, Quantitative Information

The following tables summarize information about the Company's Level 3 fair value measurements as of December 31, 2015 and 2014:



Quantitative Information about Level 3 Fair Value Measurements
(in thousands)	Fair Value as of 12/31/15		Valuation Method	Unobservable Input	Weighted Average
Convertible Preferred Securities	$	12,800	Market Approach	EBITDA Multiples	5.6
			Income Approach	Discount Rate	14.5	%

Convertible Notes (a)	$	750	Cost Basis	N/A	N/A



(in thousands)	Fair Value as of 12/31/14		Valuation Method	Unobservable Input	Weighted Average
Convertible Preferred Securities	$	13,300	Market Approach	EBITDA Multiples	7.00
			Income Approach	Discount Rate	14.5	%

(a) In November, 2015 the Company, along with other investors, acquired convertible preferred securities. There were no significant changes with the underlying investment, interest rate assumptions, or expectations of future cash flows as of December 31, 2015, so initial cost is being used as an approximation of fair value in the initial measurement period.

Fair value of long-term debt estimated using quoted market prices or discounted future cash flows

Based upon the Company’s credit standing and current interest rates offered by the Company on similar bonds and rates currently available to the Company for long-term borrowings with similar terms and remaining maturities, the Company estimates the fair values of its fixed rate long-term debt instruments outstanding at December 31, 2015 and 2014, as follows:



(in thousands)	Carrying Amount		Fair Value		Fair Value Hierarchy Level
2015:
Fixed rate long-term notes payable	$	241,111	$	244,101	Level 2
Debenture bonds	39,375		40,087		Level 2
	$	280,486	$	284,188

2014:
Fixed rate long-term notes payable	$	250,970	$	256,756	Level 2
Debenture bonds	42,098		43,095		Level 2
	$	293,068	$	299,851