XML 56 R46.htm IDEA: XBRL DOCUMENT v3.23.2
Fair Values of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Summary of Methods and Assumptions Used in Estimating Fair Value
The below methods and assumptions were used by the Company in estimating the fair values of its financial instruments. There were no transfers of assets or liabilities between levels in any period presented.

Financial InstrumentFair Value
Level		Methods and Assumptions
Deferred compensation plan assets and liabilitiesLevel 1The fair value of the Company’s nonqualified deferred compensation plan for certain executives and other highly compensated employees is based on the fair values of associated assets and liabilities, which are held in mutual funds and are based on the quoted market values of the securities held within the mutual funds.
Commodity derivative instrumentsLevel 2The fair values of the Company’s commodity derivative instruments are based on current settlement values at each balance sheet date, which represent the estimated amounts the Company would have received or paid upon termination of these instruments. The Company’s credit risk related to the commodity derivative instruments is managed by requiring high standards for its counterparties and periodic settlements. The Company considers nonperformance risk in determining the fair values of commodity derivative instruments.
Long-term debtLevel 2The carrying amounts of the Company’s variable rate debt approximate the fair values due to variable interest rates with short reset periods. The fair values of the Company’s fixed rate debt are based on estimated current market prices.
Acquisition related contingent considerationLevel 3The fair value of the Company’s acquisition related contingent consideration is based on internal forecasts and the weighted average cost of capital (“WACC”) derived from market data.
Summary of Deferred Compensation Plan, Commodity Derivative Instruments, Debt and Acquisition Related Contingent Consideration
The following tables summarize the carrying amounts and the fair values by level of the Company’s deferred compensation plan assets and liabilities, commodity derivative instruments, long‑term debt and acquisition related contingent consideration:

June 30, 2023
(in thousands)Carrying
Amount		Total
Fair Value		Fair Value
Level 1		Fair Value
Level 2		Fair Value
Level 3
Assets:
Deferred compensation plan assets$59,918 $59,918 $59,918 $— $— 
Commodity derivative instruments402 402 — 402 — 
Liabilities:
Deferred compensation plan liabilities59,918 59,918 59,918 — — 
Long-term debt598,992 572,500 — 572,500 — 
Acquisition related contingent consideration594,389 594,389 — — 594,389 

December 31, 2022
(in thousands)Carrying
Amount		Total
Fair Value		Fair Value
Level 1		Fair Value
Level 2		Fair Value
Level 3
Assets:
Deferred compensation plan assets$51,257 $51,257 $51,257 $— $— 
Commodity derivative instruments4,808 4,808 — 4,808 — 
Liabilities:
Deferred compensation plan liabilities51,257 51,257 51,257 — — 
Long-term debt598,817 575,900 — 575,900 — 
Acquisition related contingent consideration541,491 541,491 — — 541,491 
Summary of Acquisition Related Contingent Consideration Liability A summary of the Level 3 activity is as follows:
Second QuarterFirst Half
(in thousands)2023202220232022
Beginning balance - Level 3 liability$576,446 $527,926 $541,491 $542,105 
Payments of acquisition related contingent consideration(6,877)(8,888)(13,376)(18,710)
Reclassification to current payables(700)(800)(900)300 
Increase (decrease) in fair value25,520 4,021 67,174 (1,436)
Ending balance - Level 3 liability$594,389 $522,259 $594,389 $522,259