Note 10 - Fair Value Measurement

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Fair Value Disclosures [Text Block]

10.  Fair Value Measurement

The following tables summarize significant assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value levels (in thousands):

	Fair Value Measurement at Reporting Date Using
March 31, 2022	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	21,237	$	—	$	—	$	21,237
Other current assets
Commodity swap		—		3,047		—		3,047
Total assets	$	21,237	$	3,047	$	—	$	24,284
Accrued and other current liabilities
Interest rate swap	$	—	$	507	$	—	$	507
Total liabilities	$	—	$	507	$	—	$	507

December 31, 2021
Cash equivalents
Money market funds	$	65,233	$	—	$	—	$	65,233
Total assets	$	65,233	$	—	$	—	$	65,233
Accrued and other current liabilities
Interest rate swap	$	—	$	3,514	$	—	$	3,514
Total liabilities	$	—	$	3,514	$	—	$	3,514

March 31, 2021
Cash equivalents
Money market funds	$	42,488	$	—	$	—	$	42,488
Other current assets
Commodity swap		—		1,106		—		1,106
Total assets	$	42,488	$	1,106	$	—	$	43,594
Accrued and other current liabilities
Interest rate swap	$	—	$	6,535	$	—	$	6,535
Total liabilities	$	—	$	6,535	$	—	$	6,535

Interest Rate Swaps

In connection with entering into the Credit Agreement, we entered into two interest rate swaps with a combined initial notional amount of $150.0 million, an effective date of May 2018 and maturity dates in  May 2023. The interest rate swaps were designated as cash flow hedges through the three months ended March 31, 2021 and de-designated as cash flow hedges during the three months ended June 30, 2021. The impact from the interest rate swap de-designation that was included in interest expense on the condensed consolidated statements of operations was $0.7 million for the three months ended March 31, 2022.

During the three months ended March 31, 2022, we terminated $60.9 million, or 50%, of the notional amount of our floating-to-fixed interest rate swaps in connection with the prepayment of the same amount of our term loan (see Note 15).

Commodity Swaps

As of March 31, 2022, we held commodity swaps for crude oil designated as cash flow hedges with a total outstanding notional amount of $17.9 million maturing by October 31, 2022. The financial statement impact during the three months ended  March 31, 2022 was a realized gain of $0.4 million and an unrealized gain of $3.3 million. As of March 31, 2021, we held commodity swaps for crude oil that were designated as cash flow hedges, maturing in September and October 2021. The total commodity swap gain for these swaps was $1.0 million.

Other Assets and Liabilities

The carrying values and estimated fair values of financial instruments that are not required to be recorded at fair value in the condensed consolidated balance sheets were as follows:

		March 31, 2022				December 31, 2021				March 31, 2021
(in thousands)	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Held-to-maturity marketable securities (1)	Level 1	$	36,728	$	35,909	$	15,600	$	15,459	$	11,300	$	11,258
Liabilities (including current maturities):
2.75% Convertible Notes (2),(3)	Level 2	$	230,000	$	276,288	$	207,354	$	313,785	$	202,018	$	324,013
Credit Agreement - term loan (2)	Level 3	$	60,938	$	62,861	$	123,750	$	124,598	$	129,375	$	130,645

(1) All marketable securities as of March 31, 2022, December 31, 2021 and March 31, 2021 were classified as held-to-maturity and consisted of U.S. Government and agency obligations and corporate commercial paper maturing in three months to five years.

(2) The fair value of the 2.75% Convertible Notes is based on the median price of the notes in an active market. The fair value of the Credit Agreement is based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk. See Note 15 for more information about the 2.75% Convertible Notes and the Credit Agreement.

(3) Excluded from the carrying value is debt discount of $22.6 million and $28.0 million as of  December 31, 2021 and March 31, 2021, respectively, related to the 2.75% Convertible Notes (see Notes 2 and 15).

During the three months ended March 31, 2022 and 2021, we did not record any fair value adjustments related to nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.