v3.22.2.2
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2022
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 at September 30, 2022, December 31, 2021 and September 30, 2021:
(in thousands)September 30, 2022
Assets (liabilities)Level 1Level 2Level 3Total
Commodity derivatives, net (a)
$110,025 $257,142 $— $367,167 
Provisionally priced contracts (b)
19,685 (41,188)— (21,503)
Convertible preferred securities (c)
— — 16,946 16,946 
Other assets and liabilities (d)
(3,037)32,594 — 29,557 
Total$126,673 $248,548 $16,946 $392,167 
(in thousands)December 31, 2021
Assets (liabilities)Level 1Level 2Level 3Total
Commodity derivatives, net (a)
$128,407 $156,698 $— $285,105 
Provisionally priced contracts (b)
43,944 (89,797)— (45,853)
Convertible preferred securities (c)
— — 11,618 11,618 
Other assets and liabilities (d)
2,784 (7,361)— (4,577)
Total$175,135 $59,540 $11,618 $246,293 
(in thousands)September 30, 2021
Assets (liabilities)Level 1Level 2Level 3Total
Commodity derivatives, net (a)
$122,877 $212,218 $— $335,095 
Provisionally priced contracts (b)
28,469 (25,134)— 3,335 
Convertible preferred securities (c)
— — 11,066 11,066 
Other assets and liabilities (d)
4,171 (11,865)— (7,694)
Total$155,517 $175,219 $11,066 $341,802 
(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)20222021
Assets at January 1,$11,618 $8,849 
Additional investments3,883 2,800 
Gains included in Other income, net404 — 
Assets at March 31,$15,905 $11,649 
Additional Investments772 1,901 
Gains included in Other income, net126 — 
Assets at June 30,$16,803 $13,550 
Additional investments— 300 
Gains (losses) included in Other income, net143 (2,784)
Assets at September 30,$16,946 $11,066 
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, 2022, December 31, 2021 and September 30, 2021:
Quantitative Information about Recurring Level 3 Fair Value Measurements
Fair Value as of
(in thousands)September 30, 2022December 31, 2021September 30, 2021Valuation MethodUnobservable InputWeighted Average
Convertible preferred securities (a)
$16,946 $11,618 $11,066 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
(in thousands)Fair Value as of 12/31/2021Valuation MethodUnobservable InputWeighted Average
Frac sand assets (b)$2,946 Third party appraisalVariousN/A
Real property (c)700 Market approachVariousN/A
(b) The Company recognized impairment charges on long lived assets related to its frac sand business. The fair value of the assets were determined using prior transactions and third-party appraisals. These measures are considered Level 3 inputs on a nonrecurring basis.
(c) The Company recognized impairment charges on certain Trade assets and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the assets was determined using prior transactions in the local market and a recent sale of comparable Trade group assets held by the Company.