Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2015, December 31, 2014 and September 30, 2014:



(in thousands)	September 30, 2015
Assets (liabilities)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	16,121	$	—		$	—	$	16,121
Restricted cash	181		—			—		181
Commodity derivatives, net (a)	34,337		(24,611		)	—		9,726
Convertible preferred securities (b)	—		—			12,800		12,800
Other assets and liabilities (c)	10,814		(4,010		)	350		7,154
Total	$	61,453	$	(28,621	)	$	13,150	$	45,982



(in thousands)	December 31, 2014
Assets (liabilities)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	269	$	—		$	—	$	269
Restricted cash	429		—			—		429
Commodity derivatives, net (a)	72,868		(46,983		)	—		25,885
Convertible preferred securities (b)	—		—			13,300		13,300
Other assets and liabilities (c)	10,869		(2,666		)	—		8,203
Total	$	84,435	$	(49,649	)	$	13,300	$	48,086



(in thousands)	September 30, 2014
Assets (liabilities)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	85,663	$	—		$	—	$	85,663
Restricted cash	173		—			—		173
Commodity derivatives, net (a)	32,606		(159,295		)	—		(126,689		)
Convertible preferred securities (b)	—		—			15,000		15,000
Other assets and liabilities (c)	10,671		(1,636		)	—		9,035
Total	$	129,113	$	(160,931	)	$	15,000	$	(16,818	)


(a)	Includes associated cash posted/received as collateral


(b)	Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets


(c)	Included in other assets and liabilities are deferred compensation assets (Level 1), interest rate derivatives (Level 2), and contingent consideration to the former owners of Kay Flo Industries, Inc (Level 3).

Beginning and ending balances for the Company's fair value measurements using Level 3 inputs

A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows:



(in thousands)	2015		2014		2015			2014
	Contingent Consideration		Contingent Consideration		Convertible Preferred Securities			Convertible Preferred Securities
Asset at January 1,	$	—	$	—	$	13,300		$	25,720
Unrealized gains (losses) included in other comprehensive income	—		—		—			(5,190		)
Asset at March 31,	$	—	$	—	$	13,300		$	20,530
Unrealized gains (losses) included in other comprehensive income	—		—		—			(3,580		)
New agreements	$	350	$	—	$	—		$	—
Asset at June 30,	$	350	$	—	$	13,300		$	16,950
Unrealized gains (losses) included in other comprehensive income	—		—		—			(1,950		)
Sales proceeds	—		—		(992		)	—
Realized gains (losses) included in earnings	—		—		492			—
Asset at September 30,	$	350	$	—	$	12,800		$	15,000

Fair Value Inputs, Assets, Quantitative Information

The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of September 30, 2015, December 31, 2014 and September 30, 2014:



Quantitative Information about Level 3 Fair Value Measurements
(in thousands)	Fair Value as of September 30, 2015		Valuation Method	Unobservable Input	Weighted Average
Convertible Preferred Securities	$	12,800	Market Approach	EBITDA Multiples	5.535
			Income Approach	Discount Rate	14.5	%



(in thousands)	Fair Value as of December 31, 2014		Valuation Method	Unobservable Input	Weighted Average
Convertible Preferred Securities	$	13,300	Market Approach	EBITDA Multiples	7.00
			Income Approach	Discount Rate	14.5	%



(in thousands)	Fair Value as of September 30, 2014		Valuation Method	Unobservable Input	Weighted Average
Convertible Preferred Securities	$	15,000	Market Approach	EBITDA Multiples	8.35
			Income Approach	Discount Rate	14.5	%

Fair value of long-term debt estimated using quoted market prices or discounted future cash flows



(in thousands)	September 30, 2015		December 31, 2014		September 30, 2014
Fair value of long-term debt, including current maturities	$	448,590	$	382,139	$	369,000
Fair value in excess of carrying value	8,040		7,086		2,795