FAIR VALUE MEASUREMENTS
|9 Months Ended
Sep. 30, 2022
|Notes to Financial Statements
|Fair Value Disclosures [Text Block]
NOTE 3 – FAIR VALUE MEASUREMENTS
Derivative Financial Instruments
The Company measures the fair value of derivative financial instruments by applying the income approach, using models with inputs that are classified within Level 2 of the valuation hierarchy. The inputs used for the fair value measurement of derivative financial instruments are the exercise price, the expiration date, the settlement date, notional quantities, the implied volatility, the discount curve with spreads and published commodity future prices. Derivative financial instruments are reported in the Condensed Consolidated Balance Sheets using fair value. See Note 8 – Derivative Financial Instruments, for additional information on derivative financial instruments.
The following table presents the fair value of the Company’s derivative financial instruments (in thousands):
The following table presents the net value and fair value of the Company’s debt (in thousands):
The fair value of the Term Loan was measured using a discounted cash flows model and current market rates. The fair value of the Senior Second Lien Notes was measured using quoted prices, although the market is not a highly liquid market. The fair value of debt was classified as Level 2 within the valuation hierarchy.