XML 27 R15.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Fair Value Measurements
3 Months Ended
Mar. 31, 2024
Fair Value Measurements  
Fair Value Measurements

Note 8.    Fair Value Measurements

The following tables present, by level within the fair value hierarchy, the Partnership’s financial assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 (in thousands):

Fair Value at March 31, 2024

 

Cash Collateral 

 

    

Level 1

    

Level 2

    

Netting

    

Total

 

Assets:

Forward derivative contracts (1)

$

$

9,108

$

$

9,108

Exchange-traded/cleared derivative instruments (2)

 

(18,274)

 

 

31,718

 

13,444

Pension plans

 

18,039

 

 

 

18,039

Total assets

$

(235)

$

9,108

$

31,718

$

40,591

Liabilities:

Forward derivative contracts (1)

$

$

(7,592)

$

$

(7,592)

Fair Value at December 31, 2023

 

Cash Collateral 

 

    

Level 1

    

Level 2

    

Netting

    

Total

 

Assets:

Forward derivative contracts (1)

$

$

17,656

$

$

17,656

Exchange-traded/cleared derivative instruments (2)

 

33,421

 

 

(20,642)

 

12,779

Pension plans

 

19,113

 

 

 

19,113

Total assets

$

52,534

$

17,656

$

(20,642)

$

49,548

Liabilities:

Forward derivative contracts (1)

$

$

(4,987)

$

$

(4,987)

(1)Forward derivative contracts include the Partnership’s petroleum and ethanol physical and financial forwards and OTC swaps.
(2)Amount includes the effect of cash balances on deposit with clearing brokers.

This table excludes cash on hand and assets and liabilities that are measured at historical cost or any basis other than fair value. The carrying amounts of certain of the Partnership’s financial instruments, including cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate fair value due to their short maturities. The carrying value of the credit facility approximates fair value due to the variable rate nature of these financial instruments.

The carrying value of the inventory qualifying for fair value hedge accounting approximates fair value due to adjustments for changes in fair value of the hedged item. The fair values of the derivatives used by the Partnership are disclosed in Note 7.

The determination of the fair values above incorporates factors including not only the credit standing of the counterparties involved, but also the impact of the Partnership’s nonperformance risks on its liabilities.

The Partnership estimates the fair values of its senior notes using a combination of quoted market prices for similar financing arrangements and expected future payments discounted at risk-adjusted rates, which are considered

Level 2 inputs. The fair values of the senior notes, estimated by observing market trading prices of the respective senior notes, were as follows (in thousands):

March 31, 2024

December 31, 2023

Face

Fair

Face

Fair

Value

Value

Value

Value

7.00% senior notes due 2027

$

400,000

$

399,500

$

400,000

$

390,516

6.875% senior notes due 2029

$

350,000

$

345,187

$

350,000

$

340,130

8.250% senior notes due 2032

$

450,000

$

465,750

$

$

Non-Recurring Fair Value Measures

Certain nonfinancial assets and liabilities are measured at fair value on a non-recurring basis and are subject to fair value adjustments in certain circumstances, such as acquired assets and liabilities, losses related to firm non-cancellable purchase commitments or long-lived assets subject to impairment. For assets and liabilities measured on a non-recurring basis during the period, accounting guidance requires quantitative disclosures about the fair value measurements separately for each major category.