XML 63 R42.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Assets Measured at Fair Value on Nonrecurring Basis
The following tables present the Company's assets and liabilities that are measured at fair value on a nonrecurring basis at December 31, 2017:
(in thousands)
December 31, 2017
Assets (liabilities)
Level 1
 
Level 2
 
Level 3
 
Total
Property, plant and equipment (a)
$
—

 
$
—

 
$
29,347

 
$
29,347

Total
$
—

 
$
—

 
$
29,347

 
$
29,347

(a)
The Company recognized impairment charges on certain grain assets during 2017 and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the grain assets was determined using prior transactions, prior third-party appraisals and a pending sale of grain assets held by the Company.
Assets and liabilities measured at fair value on a recurring basis
The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis at December 31, 2017 and 2016:
(in thousands)
December 31, 2017
Assets (liabilities)
Level 1
 
Level 2
 
Level 3
 
Total
Commodity derivatives, net (a)
18,603

 
(18,067
)
 
—

 
536

Provisionally priced contracts (b)
(98,190
)
 
(67,094
)
 
—

 
(165,284
)
Convertible preferred securities (c)
—

 
—

 
7,388

 
7,388

Other assets and liabilities (d)
9,705

 
(1,244
)
 
—

 
8,461

Total
$
(69,882
)
 
$
(86,405
)
 
$
7,388

 
$
(148,899
)
(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
)

(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 Consolidated Balance Sheets related to certain available for sale securities.
(d)
Included in other assets and liabilities are assets held by the Company to fund deferred compensation plans, 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 recurring fair value measurements using Level 3 inputs is as follows: 
 
Convertible Preferred Securities
 
Contingent Consideration
(in thousands)
2017

2016
 
2017
 
2016
Assets (liabilities) at January 1,
$
3,294

 
$
13,550

 
$
—

 
$
(350
)
New investments
3,750

 
2,500

 
—

 
—

Sales proceeds
—

 
(13,485
)
 
—

 
—

Gains (losses) included in earnings
—

 
729

 
—

 
350

Unrealized gains (losses) included in other comprehensive income
344

 
—

 
—

 
—

Assets (liabilities) at December 31,
$
7,388

 
$
3,294

 
$
—

 
$
—
Fair Value Inputs, Assets, Quantitative Information
The following tables summarize information about the Company's Level 3 fair value measurements as of December 31, 2017 and 2016:
Quantitative Information about Level 3 Fair Value Measurements
(in thousands)
Fair Value as of 12/31/17
 
Valuation Method
 
Unobservable Input
 
Weighted Average
Convertible preferred securities (a)
$
7,388

 
Implied based on market prices
 
Various
 
N/A
Real Property (b)
$
29,347

 
Third-Party Appraisal
 
N/A
 
N/A

(in thousands)
Fair Value as of 12/31/16
 
Valuation Method
 
Unobservable Input
 
Weighted Average
Convertible preferred (a)
$
3,294

 
Cost Basis, Plus Interest
 
N/A
 
N/A
(a)
Due to early stages of business and timing of investments, cost basis, plus interest was deemed to approximate fair value in prior periods. As the underlying enterprises have evolved additional data is available to consider in order to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones and other relevant market data points.
(b)
The Company recognized impairment charges on certain grain assets during 2017 and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the grain assets was determined using prior transactions, prior third-party appraisals and a pending sale of grain assets held by the Company.
Fair value of long-term debt estimated using quoted market prices or discounted future cash flows
Based upon the Company’s credit standing and current interest rates offered by the Company on similar bonds and rates currently available to the Company for long-term borrowings with similar terms and remaining maturities, the Company estimates the fair values of its fixed rate long-term debt instruments outstanding at December 31, 2017 and 2016, as follows: 
(in thousands)
Carrying Amount
 
Fair Value
 
Fair Value Hierarchy Level
2017
 
 
 
 
 
Fixed rate long-term notes payable
$
275,989

 
$
275,340

 
Level 2
Debenture bonds
30,432

 
29,452

 
Level 2
 
$
306,421

 
$
304,792

 
 
 
 
 
 
 
 
2016
 
 
 
 
 
Fixed rate long-term notes payable
$
308,645

 
$
310,338

 
Level 2
Debenture bonds
36,931

 
37,883

 
Level 2
 
$
345,576

 
$
348,221