Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Hierarchy Table for Assets and Liabilities Measured at Fair Value

We use a market approach for our recurring fair value measurements and endeavor to use the best information available. The following tables present the fair value hierarchy table for assets and liabilities measured at fair value, on a recurring basis (in thousands):

	Fair Value Measurements at June 30, 2019 using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Carrying Value as of June 30, 2019
Trading securities held in the deferred compensation plans	$	60,697	$	—		$	—		$	60,697

Derivatives –swaps		—		137,644			—			137,644
–collars		—		1,116			—			1,116
–basis swaps		—		(3,812	)		—			(3,812	)
–freight swaps		—		1,501			—			1,501
–swaptions		—		—			23,912			23,912

	Fair Value Measurements at December 31, 2018 using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Carrying Value as of December 31, 2018
Trading securities held in the deferred compensation plans	$	57,293	$	—		$	—		$	57,293
Derivatives –swaps		—		69,156			—			69,156
–collars		—		5,945			8,538			14,483
–basis swaps		—		4,883			—			4,883
–freight swaps		—		(561	)		—			(561	)
–swaptions		—		—			(2,772	)		(2,772	)

Reconciliation of the Beginning and Ending Balances for Derivative Instruments Classified as Level 3 in the Fair Value Hierarchy

The following is a reconciliation of the beginning and ending balances for derivative instruments classified as Level 3 in the fair value hierarchy (in thousands):

	As of June 30, 2019
Balance at December 31, 2018	$	5,766
Total gains:
Included in earnings		28,338
Settlements, net		(10,192	)
Balance at June 30, 2019	$	23,912

Carrying Amounts and Fair Values of Financial Instruments

The following presents the carrying amounts and the fair values of our financial instruments as of June 30, 2019 and December 31, 2018 (in thousands):

	June 30, 2019						December 31, 2018
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets:
Commodity swaps, options and basis swaps	$	163,136		$	163,136		$	92,795		$	92,795
Marketable securities ^(a)		60,697			60,697			57,293			57,293
(Liabilities):
Commodity swaps, options and basis swaps		(2,775	)		(2,775	)		(7,606	)		(7,606	)
Bank credit facility ^(b)		(895,000	)		(895,000	)		(943,000	)		(943,000	)
5.75% senior notes due 2021 ^(b)		(475,952	)		(480,336	)		(475,952	)		(455,972	)
5.00% senior notes due 2022 ^(b)		(580,032	)		(553,948	)		(580,032	)		(519,343	)
5.875% senior notes due 2022 ^(b)		(329,244	)		(328,819	)		(329,244	)		(305,989	)
Other senior notes due 2022 ^(b)		(590	)		(590	)		(590	)		(581	)
5.00% senior notes due 2023 ^(b)		(741,531	)		(698,826	)		(741,531	)		(654,683	)
4.875% senior notes due 2025 ^(b)		(750,000	)		(658,020	)		(750,000	)		(616,313	)
5.75% senior subordinated notes due 2021 ^(b)		(22,214	)		(22,381	)		(22,214	)		(21,638	)
5.00% senior subordinated notes due 2022 ^(b)		(19,054	)		(18,379	)		(19,054	)		(17,072	)
5.00% senior subordinated notes due 2023 ^(b)		(7,712	)		(7,158	)		(7,712	)		(6,690	)
Deferred compensation plan ^(c)		(76,238	)		(76,238	)		(80,092	)		(80,092	)

^(a)	Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges.

^(b)	The book value of our bank debt approximates fair value because of its floating rate structure. The fair value of our senior notes and our senior subordinated notes is based on end of period market quotes which are Level 2 inputs.

^(c)	The fair value of our deferred compensation plan is updated at the closing price on the balance sheet date which is a Level 1 input.