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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
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:
(in thousands)March 31, 2024
Assets (liabilities)Level 1Level 2Level 3Total
Commodity derivatives, net (a)$48,750 $67,599 $— $116,349 
Provisionally priced contracts (b)(86,176)(30,709)— (116,885)
Convertible preferred securities (c)— — 15,625 15,625 
Other assets and liabilities (d)5,525 32,860 — 38,385 
Total$(31,901)$69,750 $15,625 $53,474 
(in thousands)December 31, 2023
Assets (liabilities)Level 1Level 2Level 3Total
Commodity derivatives, net (a)$48,676 $39,572 $— $88,248 
Provisionally priced contracts (b)(108,736)(65,343)— (174,079)
Convertible preferred securities (c)— — 15,625 15,625 
Other assets and liabilities (d)5,477 28,009 — 33,486 
Total$(54,583)$2,238 $15,625 $(36,720)
(in thousands)March 31, 2023
Assets (liabilities)Level 1Level 2Level 3Total
Commodity derivatives, net (a)$32,115 $82,779 $— $114,894 
Provisionally priced contracts (b)(16,187)(52,150)— (68,337)
Convertible preferred securities (c)— — 15,410 15,410 
Other assets and liabilities (d)8,357 24,983 — 33,340 
Total$24,285 $55,612 $15,410 $95,307 
(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 assets, net” on the Company’s Condensed 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 and foreign exchange derivative contracts (Level 1), as well as 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:
Convertible Preferred Securities
(in thousands)20242023
Assets at January 1,$15,625 $16,278 
Gains included in Other income, net— 802 
Proceeds from investments— (1,670)
Assets at March 31,$15,625 $15,410 
Fair Value Inputs, Assets, Quantitative Information
The following tables summarize quantitative information about the Company's Level 3 fair value measurements:
Quantitative Information about Recurring Level 3 Fair Value Measurements
Fair Value as of
(in thousands)March 31, 2024December 31, 2023March 31, 2023Valuation MethodUnobservable InputWeighted Average
Convertible preferred securities (a)$15,625 $15,625 $15,410 Implied based on market pricesN/AN/A
(a) The Company considers observable price changes and other additional market data available to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones, and other relevant market data points.
Quantitative Information about Non-Recurring Level 3 Fair Value Measurements
Fair Value as of
(in thousands)March 31, 2024December 31, 2023March 31, 2023Valuation MethodUnobservable InputWeighted Average
Ethanol Plant Assets (a)$— $— $41,673 VariousVariousN/A
(a) The Company recognized impairment charges on ELEMENT ethanol plant assets in Colwich, Kansas. The fair value of the assets was determined by a third-party consultant using a discounted cash flow method and a market approach. Both of these methods were given probability weightings based on management's assessment of the ethanol plant's future operations to arrive at the fair value of the ethanol plant assets. The discounted cash flow model is determined by discounting the projected free cash flows using an appropriate discount rate. Key assumptions in the projections of future cash flows used in the consultant's model included input costs (corn, natural gas, etc.), production days, and co-product premiums. The market approach analyzed enterprise value to ethanol production capacity multiples for a group of guideline public companies as well as recent mergers and acquisition transactions. Using these multiples as a baseline, the consultant applied selected multiples to the ELEMENT plant production capacity to arrive at an indicated fair value. These measures are considered Level 3 inputs on a nonrecurring basis.