Disclosures About Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables set forth the Company’s assets and liabilities that were measured at fair value, on a recurring basis, by level within the fair value hierarchy. During the three months ended March 31, 2015 and year ended December 31, 2014, there were $1.6 million of equity securities transferred from level 2 to level 1 and $5.6 million in equity securities transferred from level 1 to level 2, respectively.

At March 31, 2015 (in thousands):



	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at March 31, 2015
Assets
Available-for-sale equity securities⁽¹⁾	$	10,858	$	7,546			$	18,404
Available-for-sale debt securities⁽¹⁾	$	5,751					$	5,751
Readily marketable inventory ⁽²⁾	$	1,546	$	2,817			$	4,363
Derivative instruments ⁽³⁾	$	723	$	630			$	1,353
Liabilities
Derivative instruments ⁽³⁾	$	1,385	$	501			$	1,886
Contingent Consideration ⁽⁴⁾					$	3,745	$	3,745

At December 31, 2014 (in thousands):



	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at December 31, 2014
Assets
Available-for-sale equity securities ⁽¹⁾	$	10,892	$	11,098			$	21,990
Available-for-sale debt securities⁽¹⁾	$	6,380					$	6,380
Readily marketable inventory ⁽²⁾	$	7,992	$	3,480			$	11,472
Derivative instruments ⁽³⁾	$	121	$	1,580			$	1,701
Liabilities
Derivative instruments ⁽³⁾	$	1,181	$	365			$	1,546
Contingent Consideration ⁽⁴⁾					$	3,902	$	3,902

⁽¹⁾ Where there are quoted market prices that are readily available in an active market, securities are classified as Level 1 of the valuation hierarchy. Level 1 available-for-sale investments are valued using quoted market prices multiplied by the number of shares owned and debt securities are valued using a market quote in an active market. All Level 2 available-for-sale securities are one class because they all contain similar risks and are valued using market prices and include securities where the markets are not active, that is where there are few transactions, or the prices are not current or the prices vary considerably over time. Inputs include directly or indirectly observable inputs such as quoted prices. Level 3 available-for-sale securities would include securities where valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

⁽²⁾ Readily marketable inventory comprises commodity inventories that are reported at fair value based on commodity exchange quotations. Canola seed inventories are valued based on the quoted market price multiplied by the quantity of inventory and are classified as Level 1. Canola oil and meal inventories are classified as Level 2 because the inputs are directly observable, such as the quoted market price of the corresponding soybean commodity.

⁽³⁾ Included in this caption are exchange traded futures and forward commodity purchase and sale contracts. The exchange traded futures contracts are valued based on quoted prices in active markets multiplied by the number of contracts and are classified as Level 1. Forward commodity purchase and sale contracts classified as derivatives are valued using quantitative models that require the use of multiple inputs including quoted market prices and various other assumptions including time value. These contracts are categorized as Level 2 and are valued based on the difference between the quoted market price and the price in the contract multiplied by the undelivered notional quantity deliverable under the contract.

⁽⁴⁾Included in this caption is the contingent consideration that the Company entered into as part of the acquisition of Citizens Homes, Inc. (“Citizens”). The estimated fair value of the contingent consideration was estimated based on applying the income approach and a weighted probability of achievement of the performance milestones. The estimated fair value of the contingent consideration was calculated by using a Monte Carlo simulation model. The fair value of the contingent consideration was then estimated as the arithmetic average of all simulation paths. The model was based on forecast adjusted net income over the contingent consideration period. The measurement is based on significant inputs that are not observable in the market, which are defined as Level 3 inputs.

Fair Value Measurements on a Non-Recurring Basis

The following tables set forth the Company’s non-financial assets that were measured at fair value on a non-recurring basis for the three months ended March 31, 2015, and for the year ended December 31, 2014, by level within the fair value hierarchy.

Three Months Ended March 31, 2015 (in thousands):



Asset Description	Quoted Prices In Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Total Loss
Oil and gas wells ⁽¹⁾			$	—	$	(1,089	)
Real estate and development costs⁽²⁾			$	1,326	$	(1,875	)

⁽¹⁾The Company had a non-recurring fair value measurement for oil and gas wells that resulted in an impairment loss discussed in Note 6 “Property, Plant, and Equipment, Net.”

⁽²⁾ The Company had a non-recurring fair value measurement for real estate and capitalized development costs that resulted in an impairment loss discussed in Note 2 “Real Estate and Tangible Water Assets.”

Year Ended December 31, 2014 (in thousands):



Asset Description	Quoted Prices In Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Total Loss
Intangible water assets⁽¹⁾			$	3,638	$	(2,282	)
Tangible water asset and other assets ⁽²⁾			$	—	$	(3,509	)
Oil and gas wells ⁽³⁾			$	1,730	$	(4,428	)
Real estate ⁽⁴⁾			$	1,357	$	(2,865	)
Investments in unconsolidated affiliates equity securities held at cost ⁽⁵⁾			$	15,858	$	(1,078	)

⁽¹⁾ The Company had a non-recurring fair value measurement for intangible assets that resulted in an impairment loss discussed in Note 3 “Intangible Assets.”

⁽²⁾The Company had a non-recurring fair value measurement for a tangible water asset that resulted in an impairment loss discussed in Note 2 “Real Estate and Tangible Water Assets.”

⁽³⁾The Company had a non-recurring fair value measurement for oil and gas wells that resulted in an impairment loss discussed in Note 6 “Property, Plant, and Equipment, Net.”

⁽⁴⁾The Company had a non-recurring fair value measurement of a real estate asset discussed in Note 2 “Real Estate and Tangible Water Assets, Net.”

⁽⁵⁾The Company had a non-recurring fair value measurement of an investment in an unconsolidated affiliates equity securities held at cost discussed in Note 4 “Investments.”

Fair Value of Financial Instruments

The following table presents the carrying value and estimated fair value of the Company’s financial instruments which are not carried at fair value (in thousands):



	March 31, 2015				December 31, 2014
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Investments in unconsolidated affiliates equity securities held at cost	$	18,028	$	18,028	$	18,028	$	18,028
Investments in unconsolidated affiliates debt securities	$	2,662	$	7,964	$	2,662	$	7,964

Financial liabilities:
Debt	$	223,328	$	243,613	$	219,496	$	240,800

Notional Amounts of Open Derivative Positions

The following tables summarize the notional amount of open derivative positions (in thousands):

March 31, 2015

Exchange Traded

Non-Exchange Traded

(Short)⁽¹⁾

Long⁽¹⁾

(Short)⁽¹⁾

Long⁽¹⁾

Unit of Measure

Futures

Agricultural Commodities

(104,590

)

79,533

Tons

Natural Gas

600,000

MMBtus⁽²⁾

Forwards

(129,362

)

59,820

Tons

December 31, 2014

Exchange Traded

Non-Exchange Traded

(Short)⁽¹⁾

Long⁽¹⁾

(Short)⁽¹⁾

Long⁽¹⁾

Unit of Measure

Futures

Agricultural Commodities

(99,268

)

85,602

Tons

Natural Gas

690,000

MMBtus⁽²⁾

Forwards

(126,615

)

29,666

Tons

⁽¹⁾ Exchange and non-exchange traded futures, forwards, and swaps are presented on a gross (short) and long position basis.

⁽²⁾ Million Metric British Thermal Units.

Effect of Derivative Instruments on the Consolidated Statements of Operations and Comprehensive Income or Loss

The table below summarizes the effect of derivative instruments on the condensed consolidated statements of operations and comprehensive income or loss (in thousands):



	Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended March 31,
	Location	2015			2014
Futures	Cost of canola oil and meal sold	$	136		$	(1,054	)
Forwards	Cost of canola oil and meal sold	(180		)	1,474
Swaps	Cost of canola oil and meal sold	(630		)	3,675
		$	(674	)	$	4,095

Futures⁽¹⁾	Other income	$	(159	)

⁽¹⁾Represents derivative transactions classified as trading.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details