Company: ZEUS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001437749-25-004742
Chunk: 487

Company: OLYMPIC STEEL INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 2
Chunk 487
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906  $(664)
 Metals swaps   (424)  (1,903)  633 
 Embedded customer derivatives   424   1,903   (633)
 Total income (loss)  $365  $1,906  $(664)

    11.  Fair Value of Assets and Liabilities: 

   The Company’s financial instruments include cash and cash equivalents, short-term trade receivables, derivative instruments, accounts payable, debt instruments and finance type leases. For short-term instruments, other than those required to be reported at fair value on a recurring basis and for which additional disclosures are included below, management concluded the historical carrying value is a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.
    
   During 2024 and 2023, there were no transfers of financial assets between Levels 1, 2 or 3 fair value measurements. There have been no changes in the methodologies used at  December 31, 2024. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value as of  December 31, 2024 and 2023:
    
   Metals swaps and embedded customer derivatives – Determined by using Level 2 inputs that include the price of nickel indexed to the LME. The fair value is determined based on quoted market prices and reflects the estimated amounts the Company would pay or receive to terminate the nickel swaps.
    
   Fixed rate interest rate hedge – Based on the present value of the expected future cash flows, considering the risks involved, and using discount rates appropriate for the maturity date. Market observable Level 2 inputs are used to determine the present value of future cash flows.
    
   Supplemental executive retirement plan - Determined by the Level 1 inputs that include the readily determinable and available fair value of the mutual funds that comprise the plan assets.  
    
   The following tables present information about the Company’s assets and liabilities that were measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company:

       Value of Items Recorded at Fair Value  
   As of December 31, 2024  
 (in thousands)   Level 1    Level 2    Level 3    Total  
 Assets:                 
 Metal swaps  $-  $3,055  $-  $