Note 10 - Fair Value Measurement

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Fair Value Disclosures [Text Block]

10.  Fair Value Measurement

The following tables summarize significant assets and liabilities measured at fair value in the condensed consolidated balance sheets on a recurring basis for each of the fair value levels (in thousands):

	Fair Value Measurement at Reporting Date Using
September 30, 2022	Level 1		Level 2			Level 3		Total
Cash equivalents
Money market funds	$	76,752	$	—		$	—	$	76,752
Other current assets
Commodity swap		—		(43	)		—		(43	)
Total assets	$	76,752	$	(43	)	$	—	$	76,709

December 31, 2021
Cash equivalents
Money market funds	$	65,233	$	—	$	—	$	65,233
Total assets	$	65,233	$	—	$	—	$	65,233
Accrued and other current liabilities
Interest rate swap	$	—	$	3,514	$	—	$	3,514
Total liabilities	$	—	$	3,514	$	—	$	3,514

September 30, 2021
Cash equivalents
Money market funds	$	61,231	$	—	$	—	$	61,231
Other current assets
Restricted cash		1,512		—		—		1,512
Total assets	$	62,743	$	—	$	—	$	62,743
Accrued and other current liabilities
Interest rate swap	$	—	$	5,001	$	—	$	5,001
Total liabilities	$	—	$	5,001	$	—	$	5,001

Interest Rate Swaps

In connection with entering into the Third Amended and Restated Credit Agreement in May 2018, we entered into two amortizing interest rate swaps with a combined initial notional amount of $150.0 million, with effective dates of May 2018 and maturity dates in  May 2023.

During the second quarter of 2022, we terminated the entirety of our floating-to-fixed interest rate swaps in connection with the prepayments of our term loan (see Note 15). The impact to interest expense on the condensed consolidated statements of operations was $2.2 million for the nine months ended September 30, 2022.

Commodity Swaps

As of September 30, 2022, we held commodity swaps for crude oil designated as cash flow hedges with a total outstanding notional amount of $1.5 million with a maturity date of  October 31, 2022. The financial statement impact for the three and nine months ended September 30, 2022 was a realized gain of $1.2 million and $4.0 million, respectively. In addition, for the three months ended September 30, 2022, the commodity swaps had an unrealized loss of $2.6 million, and for the nine months ended September 30, 2022, the commodity swaps had an unrealized gain of $0.2 million. As of September 30, 2021, we held commodity swaps for crude oil that were designated as cash flow hedges with a total outstanding notional amount of $4.9 million that matured in  October 2021. The total realized commodity swap gain for these swaps was $2.5 million.

Other Assets and Liabilities

The carrying values and estimated fair values of financial instruments that are not required to be recorded at fair value in the condensed consolidated balance sheets were as follows:

		September 30, 2022				December 31, 2021				September 30, 2021
(in thousands)	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Held-to-maturity marketable securities (1)	Level 1	$	61,448	$	59,947	$	15,600	$	15,459	$	10,600	$	10,582
Liabilities (including current maturities):
2.75% Convertible Notes (2),(3)	Level 2	$	230,000	$	236,440	$	207,354	$	313,785	$	205,543	$	326,025
Third Amended and Restated Credit Agreement - term loan (2)	Level 3	$	—	$	—	$	123,750	$	124,598	$	125,625	$	126,610
Fourth Amended and Restated Credit Agreement - revolver (2)	Level 3	$	50,000	$	50,165	$	—	$	—	$	—	$	—

(1) All marketable securities as of September 30, 2022,  December 31, 2021 and  September 30, 2021 were classified as held-to-maturity and consisted of U.S. Government and agency obligations and corporate commercial paper maturing in two months to three years.

(2) The fair value of the 2.75% Convertible Notes is based on the median price of the notes in an active market. The fair value of the Third Amended and Restated Credit Agreement and Fourth Amended and Restated Credit Agreement is based on borrowing rates available to us for long-term loans with similar terms, average maturities, and credit risk. See Note 15 for more information about the 2.75% Convertible Notes, the Third Amended and Restated Credit Agreement and Fourth Amended and Restated Credit Agreement.

(3) Excluded from the carrying value is debt discount of $22.6 million and $24.5 million as of  December 31, 2021 and September 30, 2021, respectively, related to the 2.75% Convertible Notes (see Notes 2 and 15).

During the three and nine months ended September 30, 2022 and 2021, we did not record any fair value adjustments related to nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.