Green Plains Inc.GPRE
Green Plains Inc. Fair Value Disclosure
FAIR VALUE DISCLOSURES
The following methods, assumptions and valuation techniques were used in estimating the fair value of the company’s financial instruments:
Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities the company can access at the measurement date.
Level 2 – directly or indirectly observable inputs such as quoted prices for similar assets or liabilities in active markets other than quoted prices included within Level 1, quoted prices for identical or similar assets in markets that are not active, and other inputs that are observable or can be substantially corroborated by observable market data through correlation or other means. Fair value hedged inventories in the agribusiness and energy services segment as well as forward commodity purchase and sale contracts are valued at nearby futures values, plus or minus nearby basis values, which represent differences in local markets including transportation or commodity quality or grade differences.
Level 3 – unobservable inputs that are supported by little or no market activity and comprise a significant component of the fair value of the assets or liabilities.
Derivative contracts include exchange-traded commodity futures and options contracts and forward commodity purchase and sale contracts. Exchange-traded futures and options contracts are valued based on unadjusted quoted prices in active markets and are classified in Level 1. The majority of the company’s exchange-traded futures and options contracts are cash-settled on a daily basis.
There have been no changes in valuation techniques and inputs used in measuring fair value. The company’s assets and liabilities by level are as follows (in thousands):
Fair Value Measurements at December 31, 2025 | |||||||||||||||||||||||
| Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 182,319 | $ | — | $ | — | $ | 182,319 | |||||||||||||||
| Restricted cash | 47,813 | — | — | 47,813 | |||||||||||||||||||
| Inventories carried at market | — | 24,736 | — | 24,736 | |||||||||||||||||||
| Derivative financial instruments - assets | — | 6,927 | — | 6,927 | |||||||||||||||||||
Property and equipment, net of accumulated depreciation and amortization (1) | — | — | 2,000 | 2,000 | |||||||||||||||||||
| Total assets measured at fair value | $ | 230,132 | $ | 31,663 | $ | 2,000 | $ | 263,795 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
Accounts payable (2) | $ | — | $ | 28,598 | $ | — | $ | 28,598 | |||||||||||||||
| Derivative financial instruments - liabilities | — | 7,901 | — | 7,901 | |||||||||||||||||||
| Other liabilities | — | 1 | — | 1 | |||||||||||||||||||
| Total liabilities measured at fair value | $ | — | $ | 36,500 | $ | — | $ | 36,500 | |||||||||||||||
Fair Value Measurements at December 31, 2024 | |||||||||||||||||||||||
| Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 173,041 | $ | — | $ | — | $ | 173,041 | |||||||||||||||
| Restricted cash | 36,354 | — | — | 36,354 | |||||||||||||||||||
| Inventories carried at market | — | 48,500 | — | 48,500 | |||||||||||||||||||
| Derivative financial instruments - assets | — | 10,154 | — | 10,154 | |||||||||||||||||||
| Total assets measured at fair value | $ | 209,395 | $ | 58,654 | $ | — | $ | 268,049 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
Accounts payable (2) | $ | — | $ | 23,208 | $ | — | $ | 23,208 | |||||||||||||||
Accrued and other liabilities (3) | — | 2,094 | — | 2,094 | |||||||||||||||||||
| Derivative financial instruments - liabilities | — | 4,791 | — | 4,791 | |||||||||||||||||||
Other liabilities (3) | — | 979 | — | 979 | |||||||||||||||||||
| Total liabilities measured at fair value | $ | — | $ | 31,072 | $ | — | $ | 31,072 | |||||||||||||||
(1)Property and equipment, net of accumulated depreciation and amortization includes $2.0 million of assets held for sale at December 31, 2025.
(2)Accounts payable is generally stated at historical amounts with the exception of $28.6 million and $23.2 million at December 31, 2025 and 2024, respectively, related to certain delivered inventory for which the payable fluctuates based on changes in commodity prices. These payables are hybrid financial instruments for which the company has elected the fair value option.
(3)As of December 31, 2024, accrued and other liabilities includes $2.1 million and other liabilities includes $1.0 million of consideration related to potential earn-out payments recorded at fair value.
The fair value of the company’s debt was approximately $387.8 million compared with a book value of $399.5 million at December 31, 2025. The fair value of the company’s debt was approximately $518.6 million compared with a book value of $575.4 million at December 31, 2024. The company estimated the fair value of its outstanding debt using Level 2 inputs. The company believes the fair value of its accounts receivable approximated book value, which was $74.4 million and $94.9 million at December 31, 2025 and 2024, respectively.
The fair values of tangible assets and goodwill acquired represent Level 3 measurements which were derived using a combination of the income approach, market approach and cost approach for the specific assets or liabilities being valued.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 10, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 9, 2024 | |
| 2022 | Feb 10, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 18, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.