Annual report pursuant to Section 13 and 15(d)

Fair Value

v3.6.0.2
Fair Value
12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
Fair Value Disclosures
Fair Value
We determine fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We classify financial assets and financial liabilities into the following fair value hierarchy:
Level 1 -     valued based on quoted prices in active markets for identical assets and liabilities;
Level 2 -     valued based on quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability; and
Level 3 -     valued based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
As required, we utilize valuation techniques that maximize the use of observable inputs (levels 1 and 2) and minimize the use of unobservable inputs (level 3) within the fair value hierarchy. We generally apply the “market approach” to determine fair value. This method uses pricing and other information generated by market transactions for identical or comparable assets and liabilities. Assets and liabilities are classified within the fair value hierarchy based on the lowest level (least observable) input that is significant to the measurement in its entirety.
The carrying amounts of our cash and cash equivalents, receivables, payables and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The reported amounts of long-term debt approximate fair value. Derivative instruments are carried at fair value, which are based on quoted market prices. Derivative instruments are our only assets and liabilities measured at fair value on a recurring basis.
The following table sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, in the consolidated balance sheets as of December 31, 2016 and 2015:
 
Level 1
 
Level 2
 
Level 3
 
Total
As of December 31, 2016
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Fair value hedges of consigned inventory
$

 
$
14,777

 
$

 
$
14,777

Liabilities:
 
 
 
 
 
 
 
Commodity contracts (futures and forwards)
1,561

 

 

 
1,561

Interest rate swaps

 
1,956

 

 
1,956

 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Commodity contracts (swaps)
$

 
$
14,799

 
$

 
$
14,799

Fair value hedges of consigned inventory

 
33,797

 

 
33,797

Liabilities:
 
 
 
 
 
 
 
Commodity contracts (futures and forwards)
592

 

 

 
592

Interest rate swaps

 
2,176

 

 
2,176


There were no assets or liabilities that were measured at fair value on a nonrecurring basis as of December 31, 2016.
The following table sets forth our non-recurring fair value measurements, by input level, in the consolidated balance sheets as of December 31, 2015:
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Total Losses
As of December 31, 2015
 
 
 
 
 
 
 
 
 
Goodwill (1)
$

 
$

 
$
62,885

 
$
62,885

 
$
(39,028
)
_________________
(1)
Goodwill with a carrying amount of $101,913 as of December 31, 2014 was written down to its implied fair value of $62,885, resulting in an impairment charge of $39,028, which has been included in earnings for the year ended December 31, 2015.