Fair Value Measurements

3 Months Ended

Mar. 31, 2025

Fair Value Measurements

Fair Value Measurements

Note 5 — Fair Value Measurements

Current accounting guidance defines fair value as the price that would be received on 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 March 31, 2025, December 31, 2024 and March 31, 2024 the Company held certain financial assets that are required to be measured at fair value on a recurring basis. These included 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 funds. The Company’s available for sale and trading securities, which utilize Level 2 inputs, are valued based on quoted market prices or alternative pricing sources with reasonable levels of price transparency.

The fair value of the Company’s industrial development bond at March 31, 2025, December 31, 2024 and March 31, 2024 was valued using Level 2 inputs which approximates the carrying value of $7,500 for the respective 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 March 31, 2025, December 31, 2024 and March 31, 2024 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value:

	Estimated Fair Value March 31, 2025
	Total		Input Levels Used
	Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	119,528	$	119,528	$	—	$	—
Available for sale securities		287,136		4,124		283,012		—
Foreign currency derivatives		(620)		—		(620)		—
Commodity derivatives		(223)		(223)		—		—
Trading securities		100,892		82,512		18,380		—
Total assets measured at fair value	$	506,713	$	205,941	$	300,772	$	—
	Estimated Fair Value December 31, 2024
		Total	Input Levels Used
		Fair Value		Level 1		Level 2		Level 3
Cash and cash 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 March 31, 2024
		Total	Input Levels Used
		Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	64,886	$	64,886	$	—	$	—
Available for sale securities		277,471		4,038		273,433		—
Foreign currency derivatives		(29)		—		(29)		—
Commodity derivatives		(559)		(559)		—		—
Trading securities		95,957		78,362		17,595		—
Total assets measured at fair value	$	437,726	$	146,727	$	290,999	$	—