Quarterly report pursuant to Section 13 or 15(d)

Note 13 - Fair Value Measurements

v3.19.1
Note 13 - Fair Value Measurements
3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
13.
Fair Value Measurements
 
ASC
820
specifies a fair value framework and hierarchy based upon the observability of inputs used in valuation techniques. In accordance with this guidance, fair value measurements are classified under the following hierarchy:
 
 
Level
1
- Quoted prices for identical instruments in active markets.
     
 
Level
2
- Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are
not
active and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.
     
 
Level
3
- Model-derived valuations in which
one
or more significant inputs or significant value-drivers are unobservable.
 
As of
March 31, 2019
and
December 31, 2018
, the fair value of our commodity and energy derivative contracts was a net
asset
of
$1.9
million and a net
liability
 of 
$1.0
million, respectively. In accordance with ASC
820,
our commodity derivative contracts are considered Level
2
fair value measurements as they consist of both quoted price inputs and inputs provided by a
third
party that are derived principally from or corroborated by observable market data by correlation. These assumptions include, but are
not
limited to, those concerning interest rates, credit rates, discount rates, default rates and other factors. All of our derivative commodity contracts have a set term of
24
months or less.
 
As of
March 31, 2019
and
December 31, 2018
, the fair value of our interest rate swap was a
liability
of
$3.6
million and
$2.0
million, respectively. The interest rate swap is measured using a valuation model with observable inputs from active markets and is a Level
2
fair value measurement.
 
We neither hold assets or liabilities requiring a Level
3
measurement nor have we had any transfers between the hierarchy levels during
2019
 or 
2018
.
 
For purposes of financial reporting, we have determined that the carrying value of cash, accounts receivable, accounts payable, and accrued expenses approximates fair value due to their short term nature. 
As of
March 31, 2019
and
December 31, 2018
, the fair value of our money market funds, which are presented in cash and cash equivalents, was
$64.1
million and
$58.7
million, respectively. These cash equivalents are valued using quoted market prices at the respective balance sheet dates and are Level
1
fair value measurements.
 
Additionally, given the revolving nature and the variable interest rates, we have determined that the carrying value of the ABL Facility also approximates fair value.
As of
March 31, 2019
, the fair value of our Term Loan B Facility approximated
$310.4
million compared to a carrying value of
$312.0
million.
As of
December 31, 2018
, the fair value of our Term Loan B Facility approximated
$304.2
million compared to a carrying value of
$312.8
million. The fair values of the Term Loan B Facility were based upon quotes from financial institutions (Level
2
in the fair value hierarchy as defined by ASC
820
).