FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2024

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 9—FAIR VALUE MEASUREMENTS:

Current accounting guidance defines fair value as the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Guidance requires disclosure of the extent to which fair value is used to measure financial assets and liabilities, the inputs utilized in calculating valuation measurements, and the effect of the measurement of significant unobservable inputs on earnings, or changes in net assets, as of the measurement date. Guidance establishes a three-level valuation hierarchy based upon the transparency of inputs utilized in the measurement and valuation of financial assets or liabilities as of the measurement date. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity rates and yield curves. Level 3 inputs are not observable in the market and include management’s own judgments about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs is reflected in the hierarchy assessment disclosed in the table below.

As of December 31, 2024 and 2023, the Company held certain financial assets that are required to be measured at fair value on a recurring basis. These include derivative hedging instruments related to the foreign currency forward contracts and purchase of certain raw materials, investments in trading securities and available for sale securities. The Company’s available for sale securities principally consist of corporate bonds and variable rate demand notes. The Company’s trading securities principally consist of mutual fund.

The fair value of the Company’s industrial development bond at December 31, 2024 and 2023 was valued using Level 2 inputs which approximates the carrying value of $7,500 for both periods. Interest rates on the bond resets weekly based on current market conditions.

The following tables present information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2024 and 2023, and indicate the fair value hierarchy and the valuation techniques utilized by the Company to determine such fair value:

	Estimated Fair Value December 31, 2024
	Total		Input Levels Used
	Fair Value		Level 1		Level 2		Level 3
Cash and equivalents	$	138,841	$	138,841	$	—	$	—
Available for sale securities		283,060		4,102		278,958		—
Foreign currency derivatives		(818)		—		(818)		—
Commodity derivatives		(2,166)		(2,166)		—		—
Trading securities		105,067		86,925		18,142		—
Total assets measured at fair value	$	523,984	$	227,702	$	296,282	$	—

	Estimated Fair Value December 31, 2023
	Total		Input Levels Used
	Fair Value		Level 1		Level 2		Level 3
Cash and equivalents	$	75,915	$	75,915	$	—	$	—
Available for sale securities		263,313		4,084		259,229		—
Foreign currency derivatives		302		—		302		—
Commodity derivatives		(2,526)		(2,526)		—		—
Trading securities		87,800		70,681		17,119		—
Total assets measured at fair value	$	424,804	$	148,154	$	276,650	$	—

Available for sale securities which utilize Level 2 inputs consist primarily of corporate bonds and variable rate demand notes, which are valued based on quoted market prices or alternative pricing sources with reasonable levels of price transparency.

A summary of the aggregate fair value, gross unrealized gains, gross unrealized losses and amortized cost basis of the Company’s investment portfolio by major security type is as follows:

	December 31, 2024
	Amortized		Fair		Unrealized
Available for Sale:	Cost		Value		Gains		Losses
Variable rate demand notes		5,485		5,485		—		—
Corporate bonds		271,978		273,473		1,495		—
Government securities		4,036		4,102		66		—
	$	281,499	$	283,060	$	1,561	$	—

	December 31, 2023
	Amortized		Fair		Unrealized
Available for Sale:	Cost		Value		Gains		Losses
Variable rate demand notes		4,590		4,590		—		—
Corporate bonds		257,766		254,640		—		(3,126)
Government securities		4,070		4,083		13		—
	$	266,426	$	263,313	$	13	$	(3,126)