XML 42 R31.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2017
Fair Value Disclosures [Abstract]  
Fair Value Amounts by Hierarchy Level
Fair value amounts by hierarchy level as of September 30, 2017 and December 31, 2016 are presented gross in the tables below (in thousands):
 
September 30, 2017
 
Level 1
 
Level 2
 
Level 3
 
Gross Fair Value
 
Effect of Counter-Party Netting
 
Net Carrying Value on Balance Sheet (1)
Assets
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
$
235

 
$
28,733

 
$
—

 
$
28,968

 
$
(26,836
)
 
$
2,132

Interest rate derivatives
—

 
2,966

 
—

 
2,966

 
—

 
2,966

Total
$
235

 
$
31,699

 
$
—

 
$
31,934

 
$
(26,836
)
 
$
5,098

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Common stock warrants
$
—

 
$
—

 
$
(7,345
)
 
$
(7,345
)
 
$
—

 
$
(7,345
)
Commodity derivatives
(150
)
 
(26,744
)
 
—

 
(26,894
)
 
26,836

 
(58
)
J. Aron repurchase obligation derivative
—

 
—

 
(24,995
)
 
(24,995
)
 
—

 
(24,995
)
Total
$
(150
)
 
$
(26,744
)
 
$
(32,340
)
 
$
(59,234
)
 
$
26,836

 
$
(32,398
)
 
December 31, 2016
 
Level 1
 
Level 2
 
Level 3
 
Gross Fair Value
 
Effect of Counter-Party Netting
 
Net Carrying Value on Balance Sheet (1)
Assets
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
$
190

 
$
26,095

 
$
—

 
$
26,285

 
$
(23,537
)
 
$
2,748

Interest rate derivatives
—

 
3,602

 
—

 
3,602

 
(64
)
 
3,538

Total
$
190

 
$
29,697

 
$
—

 
$
29,887

 
$
(23,601
)
 
$
6,286

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Common stock warrants
$
—

 
$
—

 
$
(5,134
)
 
$
(5,134
)
 
$
—

 
$
(5,134
)
Commodity derivatives
(54
)
 
(24,078
)
 
—

 
(24,132
)
 
23,537

 
(595
)
J. Aron repurchase obligation derivative
—

 
—

 
(20,000
)
 
(20,000
)
 
—

 
(20,000
)
Interest rate derivatives
—

 
(158
)
 
—

 
(158
)
 
64

 
(94
)
Total
$
(54
)
 
$
(24,236
)
 
$
(25,134
)
 
$
(49,424
)
 
$
23,601

 
$
(25,823
)
_________________________________________________________
(1)
Does not include cash collateral of $7.7 million and $9.7 million as of September 30, 2017 and December 31, 2016, respectively, included within Prepaid and other current assets and Other long-term assets on our condensed consolidated balance sheets.
Roll Forward of Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis
A roll forward of Level 3 financial instruments measured at fair value on a recurring basis is as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Balance, at beginning of period
$
(7,324
)
 
$
(8,564
)
 
$
(25,134
)
 
$
(25,867
)
Settlements
—

 
—

 
—

 
16,810

Total unrealized income (loss) included in earnings
(25,016
)
 
(6,618
)
 
(7,206
)
 
(6,125
)
Balance, at end of period
$
(32,340
)
 
$
(15,182
)
 
$
(32,340
)
 
$
(15,182
)
Carrying Value and Fair Value of Long-term Debt and Other Financial Instruments
The carrying value and fair value of long-term debt and other financial instruments as of September 30, 2017 and December 31, 2016 are as follows (in thousands):
 
September 30, 2017
 
Carrying Value
 
Fair Value (1)
Hawaii Retail Credit Agreement (2)
$
83,773

 
$
83,773

5.00% Convertible Senior Notes due 2021 (3)
94,328

 
154,116

J. Aron Forward Sale
27,855

 
27,523

Par Wyoming Holdings Term Loan (2)
66,091

 
66,091

Wyoming Refining Senior Secured Term Loan (2)
48,652

 
48,652

Wyoming Refining Senior Secured Revolver (2)
9,502

 
9,502

Common stock warrants
7,345

 
7,345

 
December 31, 2016
 
Carrying Value
 
Fair Value (1)
Hawaii Retail Credit Agreement (2)
$
93,853

 
$
93,853

5.00% Convertible Senior Notes due 2021 (3)
91,029

 
122,229

Term Loan
57,426

 
62,367

Par Wyoming Holdings Term Loan (2)
65,908

 
65,908

Wyoming Refining Senior Secured Term Loan (2)
55,480

 
55,480

Wyoming Refining Senior Secured Revolver (2)
6,700

 
6,700

Common stock warrants
5,134

 
5,134

_________________________________________________________
(1)
The fair values of these instruments are considered Level 3 measurements in the fair value hierarchy with the exception of the fair value measurement of the 5.00% Convertible Senior Notes which is considered a Level 2 measurement as discussed below.
(2)
Fair value approximates carrying value due to the debt’s floating rate interest which approximates current market value.
(3)
The carrying value of the 5.00% Convertible Senior Notes excludes the fair value of the equity component, which was classified as equity upon issuance.