| 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) | June 30, 2024 | | Assets (liabilities) | Level 1 | | Level 2 | | Level 3 | | Total | | Commodity derivatives, net (a) | $ | 50,587 | | | $ | 1,079 | | | $ | — | | | $ | 51,666 | | | Provisionally priced contracts (b) | (40,720) | | | (16,133) | | | — | | | (56,853) | | | Convertible preferred securities (c) | — | | | — | | | 15,625 | | | 15,625 | | | Other assets and liabilities (d) | 4,949 | | | 32,749 | | | — | | | 37,698 | | | Total | $ | 14,816 | | | $ | 17,695 | | | $ | 15,625 | | | $ | 48,136 | |
| | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | December 31, 2023 | | Assets (liabilities) | Level 1 | | Level 2 | | Level 3 | | Total | | | | | | | | | | 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) | June 30, 2023 | | Assets (liabilities) | Level 1 | | Level 2 | | Level 3 | | Total | | | | | | | | | | | | | | | | | | Commodity derivatives, net (a) | $ | 69,833 | | | $ | 25,524 | | | $ | — | | | $ | 95,357 | | | Provisionally priced contracts (b) | (19,061) | | | (16,529) | | | — | | | (35,590) | | | Convertible preferred securities (c) | — | | | — | | | 15,424 | | | 15,424 | | | Other assets and liabilities (d) | 5,018 | | | 33,988 | | | — | | | 39,006 | | | Total | $ | 55,790 | | | $ | 42,983 | | | $ | 15,424 | | | $ | 114,197 | |
(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).
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| 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) | 2024 | | 2023 | | 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 | | | Additional investments | — | | | 235 | | | Losses included in Other income, net | — | | | (221) | | | | | | | Assets at June 30, | $ | 15,625 | | | $ | 15,424 | |
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| Fair Value Inputs, Assets, Quantitative Information |
The following 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) | June 30, 2024 | | December 31, 2023 | | June 30, 2023 | | Valuation Method | | Unobservable Input | | Weighted Average | | Convertible preferred securities (a) | $ | 15,625 | | | $ | 15,625 | | | $ | 15,424 | | | Implied based on market prices | | N/A | | N/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.
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