Note 4 - Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

FAIR VALUES OF FINANCIAL INSTRUMENTS

NOTE 4—FAIR VALUES OF FINANCIAL INSTRUMENTS

The carrying amounts and fair values of our financial assets and liabilities were as follows:

	December 31, 2021				December 31, 2020
	Carrying		Fair		Carrying		Fair
(In thousands)	Amount		Value		Amount		Value
Financial Assets:
Cash and cash equivalents	$	21,891	$	21,891	$	5,300	$	5,300
Accounts receivable		44,453		44,453		20,299		20,299
Other current assets - restricted cash		915		915		1,410		1,410
Financial liabilities:
Accounts payable		(15,346)		(15,346)		(11,742)		(11,742)
Debt		(19,073)		(19,073)		(17,450)		(17,450)
Senior notes, excluding discounts of $2,137		(34,500)		(37,978)		—		—
Other current liabilities - financed insurance payable		(280)		(280)		(862)		(862)

The estimated fair value of cash, accounts receivable, and accounts payable approximate the carrying amount due to the relatively short maturity of these instruments. The fair value of the Company’s other debt approximates its fair value because the debt has terms that are at prevailing market terms currently available to the Company. We use an observable market data approach to determine the fair value of our Senior Notes, a Level 1 fair-value measurement.

Nonrecurring fair value measurements include asset retirement and occupational disease obligations, the estimated fair value of which is calculated as the present value of estimated cash flows related to its liabilities using Level 3 inputs. The significant inputs used to calculate such liabilities include estimates of costs to be incurred, our discount rate, inflation rates and estimated date of expenditures.