Fair Value Measurements | Note 5 — Fair Value Measurements Current accounting guidance defines fair value as the price that would be received on the sale of an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Guidance requires disclosure of the extent to which fair value is used to measure financial assets and liabilities, the inputs utilized in calculating valuation measurements, and the effect of the measurement of significant unobservable inputs on earnings, or changes in net assets, as of the measurement date. Guidance establishes a three-level valuation hierarchy based upon the transparency of inputs utilized in the measurement and valuation of financial assets or liabilities as of the measurement date. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity rates and yield curves. Level 3 inputs are not observable in the market and include Management’s own judgments about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs are reflected in the hierarchy assessment disclosed in the table below. As of March 31, 2020, December 31, 2019 and March 31, 2019, the Company held certain financial assets that are required to be measured at fair value on a recurring basis. These included derivative hedging instruments related to the purchase of certain raw materials and foreign currencies, investments in trading securities and available for sale securities. The Company’s available for sale securities principally consist of corporate bonds. The following table presents information about the Company’s financial assets and liabilities measured at fair value as of March 31, 2020, December 31, 2019 and March 31, 2019 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Estimated Fair Value March 31, 2020 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 139,067 $ 139,067 $ - $ - Available for sale securities 162,080 3,441 158,639 - Foreign currency forward contracts (93) - (93) - Commodity futures contracts (480) (480) - - Trading securities 68,717 41,692 27,025 - Total assets measured at fair value $ 369,291 $ 183,720 $ 185,571 $ - Estimated Fair Value December 31, 2019 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 138,960 $ 138,960 $ - $ - Available for sale securities 177,292 3,588 173,704 - Foreign currency forward contracts 14 - 14 - Commodity futures contracts, net 121 121 - - Trading securities 76,183 48,260 27,923 - Total assets measured at fair value $ 392,570 $ 190,929 $ 201,641 $ - Estimated Fair Value March 31, 2019 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 77,670 $ 77,670 $ - $ - Available for sale securities 199,944 3,041 196,903 - Foreign currency forward contracts (197) - (197) - Commodity futures contracts (151) (151) - - Trading securities 69,260 42,866 26,394 - Total assets measured at fair value $ 346,526 $ 123,426 $ 223,100 $ - The fair value of the Company’s industrial revenue development bonds at March 31, 2020, December 31, 2019 and March 31, 2019 were valued using Level 2 inputs which approximates the carrying value of $7,500 for the respective periods. Interest rates on these bonds are reset weekly based on current market conditions. |