| 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, 2017, December 31, 2016 and September 30, 2016: | | | | | | | | | | | | | | | | | (in thousands) | September 30, 2017 | Assets (liabilities) | Level 1 | | Level 2 | | Level 3 | | Total | Commodity derivatives, net (a) | $ | 26,738 |
| | $ | (20,771 | ) | | $ | — |
| | $ | 5,967 |
| Provisionally priced contracts (b) | (85,546 | ) | | (33,944 | ) | | — |
| | (119,490 | ) | Convertible preferred securities (c) | — |
| | — |
| | 6,638 |
| | 6,638 |
| Other assets and liabilities (d) | 10,996 |
| | (1,929 | ) | | — |
| | 9,067 |
| Total | $ | (47,812 | ) | | $ | (56,644 | ) | | $ | 6,638 |
| | $ | (97,818 | ) |
| | | | | | | | | | | | | | | | | (in thousands) | December 31, 2016 | Assets (liabilities) | Level 1 | | Level 2 | | Level 3 | | Total | Restricted cash | $ | 471 |
| | $ | — |
| | $ | — |
| | $ | 471 |
| Commodity derivatives, net (a) | 29,872 |
| | (7,831 | ) | | — |
| | 22,041 |
| Provisionally priced contracts (b) | (105,321 | ) | | (64,876 | ) | | — |
| | (170,197 | ) | Convertible preferred securities (c) | — |
| | — |
| | 3,294 |
| | 3,294 |
| Other assets and liabilities (d) | 9,391 |
| | (2,530 | ) | | — |
| | 6,861 |
| Total | $ | (65,587 | ) | | $ | (75,237 | ) | | $ | 3,294 |
| | $ | (137,530 | ) |
| | | | | | | | | | | | | | | | | (in thousands) | September 30, 2016 | Assets (liabilities) | Level 1 | | Level 2 | | Level 3 | | Total | Restricted cash | $ | 190 |
| | $ | — |
| | $ | — |
| | $ | 190 |
| Commodity derivatives, net (a) | 34,620 |
| | (35,161 | ) | | — |
| | (541 | ) | Provisionally priced contracts (b) | (79,022 | ) | | (20,500 | ) | |
|
| | (99,522 | ) | Convertible preferred securities (c) | — |
| | — |
| | 3,294 |
| | 3,294 |
| Other assets and liabilities (d) | 11,015 |
| | (4,774 | ) | | — |
| | 6,241 |
| Total | $ | (33,197 | ) | | $ | (60,435 | ) | | $ | 3,294 |
| | $ | (90,338 | ) |
| | (a) | Includes associated cash posted/received as collateral |
| | (b) | Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2) |
| | (c) | Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets |
| | (d) | Included in other assets and liabilities are deferred compensation assets, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1), and interest rate derivatives (Level 2) |
|
| 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: | | | | | | | | | | | | | | | | | | Contingent Consideration | | Convertible Preferred Securities | (in thousands) | 2017 | | 2016 | | 2017 | | 2016 | Asset (liability) at January 1, | $ | — |
| | $ | (350 | ) | | $ | 3,294 |
| | $ | 13,550 |
| Gains (losses) included in earnings | — |
| | 190 |
| | — |
| | 710 |
| Sales proceeds | — |
| | — |
| | — |
| | (13,485 | ) | Asset (liability) at March 31, | $ | — |
| | $ | (160 | ) | | $ | 3,294 |
| | $ | 775 |
| Gains (losses) included in earnings | — |
| | 160 |
| | — |
| | 19 |
| New investments | — |
| | — |
| | — |
| | 2,500 |
| Asset (liability) at June 30, | $ | — |
|
| $ | — |
|
| $ | 3,294 |
|
| $ | 3,294 |
| Unrealized gains (losses) included in other comprehensive income | — |
| | — |
| | 344 |
| | — |
| New investments | — |
| | — |
| | 3,000 |
| | — |
| Asset (liability) at September 30, | $ | — |
| | $ | — |
| | $ | 6,638 |
| | $ | 3,294 |
|
|
| 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, 2017, December 31, 2016 and September 30, 2016: | | | | | | | | | | | Quantitative Information about Level 3 Fair Value Measurements | (in thousands) | Fair Value as of September 30, 2017 | | Valuation Method | | Unobservable Input | | Weighted Average | Convertible preferred securities (a) | $ | 6,638 |
| | Implied based on market prices | | N/A | | N/A |
| | | | | | | | | | | (in thousands) | Fair Value as of December 31, 2016 | | Valuation Method | | Unobservable Input | | Weighted Average | Convertible preferred securities (a) | $ | 3,294 |
| | Cost Basis, Plus Interest | | N/A | | N/A | Real Property | $ | 11,210 |
| | Third-Party Appraisal | | N/A | | N/A |
| | | | | | | | | | | (in thousands) | Fair Value as of September 30, 2016 | | Valuation Method | | Unobservable Input | | Weighted Average | Convertible preferred securities (a) | $ | 3,294 |
| | Cost Basis, Plus Interest | | N/A | | N/A |
|
| Fair value of long-term debt estimated using quoted market prices or discounted future cash flows |
The fair value of the Company’s long-term debt is estimated using quoted market prices or discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. As such, the Company has concluded that the fair value of long-term debt is considered Level 2 in the fair value hierarchy. | | | | | | | | | | | | | (in thousands) | September 30,
2017 |
| December 31,
2016 | | September 30,
2016 | Fair value of long-term debt, including current maturities | $ | 431,542 |
| | $ | 450,940 |
| | $ | 458,268 |
| Fair value in excess of carrying value (a) | 2,389 |
| | 3,116 |
| | 7,714 |
|
|