Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurement

v3.21.2
Fair Value Measurement
9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurement FAIR VALUE MEASUREMENT
The fair value hierarchy prioritizes the inputs used in measuring fair value as follows:
Level 1 — Quoted prices for identical instruments in active markets.
Level 2 — Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets.
Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
A summary of assets (liabilities) measured at fair value is as follows:
    As of September 30, 2021
    Total Level 1 Level 2 Level 3
Commercial paper $ 141,157  $ —  $ 141,157  $ — 
Corporate bonds $ 303,262  —  303,262  — 
Municipal bonds $ 14,490  —  14,490  — 
Commodity contract derivatives $ (3,976) (258) (3,718) — 
$ 454,933  $ (258) $ 455,191  $ — 
    As of December 31, 2020
    Total Level 1 Level 2 Level 3
Commercial paper $ 48,714  $ —  $ 48,714  $ — 
Corporate bonds $ 169,998  —  169,998  — 
U.S. Treasury bills $ 44,992  44,992  —  — 
Municipal bonds $ 5,839  —  5,839  — 
Commodity contract derivatives $ (8,706) (3,069) (5,637) $ — 
    $ 260,837  $ 41,923  $ 218,914  $ — 
The estimated fair values of the Company’s financial instruments, which are not recorded at fair value, are as follows:
    As of September 30, 2021 As of December 31, 2020
    Asset (Liability)
Carrying
Amount
Fair Value Asset (Liability)
Carrying
Amount
Fair Value
Financial liabilities:                
Debt and line of credit $ (550,003) $ (562,962) $ (66,977) $ (418,107)
The carrying amounts reported in the Condensed Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values. Money market funds are included in cash and cash equivalents on the Condensed Consolidated Balance Sheets.
The Company used the following methods and assumptions to estimate fair value of its financial instruments:
Marketable securities: The fair value of marketable securities, which include Treasury bills and municipal notes/bonds, commercial paper and corporate notes/bonds is obtained using quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active and inputs other than quoted prices, e.g., interest rates and yield curves.
Commodity derivatives: The instruments held by the Company consist primarily of futures contracts, swap agreements, purchased put options and written call options. The fair value of contracts based on quoted prices of identical assets in an active exchange-traded market is reflected in Level 1. Contract fair value that is determined based on quoted prices of similar contracts in over-the-counter markets is reflected in Level 2.
Debt and line of credit: The fair value of long-term debt and line of credit was established using discounted cash flow calculations and current market rates reflecting Level 2 inputs.