Note 4 - Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2020

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, 2020				December 31, 2019
	Carrying		Fair		Carrying		Fair
(In thousands)	Amount		Value		Amount		Value
Financial Assets:
Cash and cash equivalents	$	5,300	$	5,300	$	5,532	$	5,532
Accounts receivable		20,299		20,299		19,256		19,256
Other current assets - restricted cash		1,410		1,410		1,333		1,333
Financial liabilities:
Accounts payable		(11,742)		(11,742)		(10,663)		(10,663)
Debt		(17,450)		(17,450)		(12,947)		(12,947)
Other current liabilities - financed insurance payable		(862)		(862)		(656)		(656)

We use a market approach to determine the fair value of our fixed-rate debt using observable market data, which resulted in a Level 2 fair-value measurement.

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