Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v3.19.1
Fair Value Measurements
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
 
According to the FASB ASC Topic 820, Fair Value Measurements, fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants and requires that assets and liabilities carried at fair value are classified and disclosed in the following three categories:

Level 1 - Quoted prices for identical instruments in active markets.
Level 2 - Quoted prices for similar instruments in active or inactive markets and valuations derived from models where all significant inputs are observable in active markets.
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable in any market.

The following summarizes the fair value level of assets and liabilities that are measured on a recurring basis at December 31, 2018 and 2017 (amounts in thousands): 
 
Level 1
 
Level 2
 
Level 3
 
Total
December 31, 2018
 

 
 

 
 

 
 

Interest rate swap agreements - assets (a)
$

 
10,552

 

 
10,552

Interest rate swap agreements - liabilities (a)

 
(6,039
)
 

 
(6,039
)
Total
$

 
4,513

 

 
4,513

December 31, 2017
 

 
 

 
 

 
 

Interest rate swap agreement - asset (a)
$

 
7,058

 

 
7,058

Interest rate swap agreements - liabilities (a)

 
(13,817
)
 

 
(13,817
)
Total
$

 
(6,759
)
 

 
(6,759
)

 

(a)
Depending on the maturity date of the Swap and the balance sheet date, Swap asset values are included in Prepaid and other current assets or non-current Other assets, net and Swap liability values are included in current Other accrued liabilities or non-current Derivative financial instruments on the consolidated balance sheets.

The Company has determined that the significant inputs used to value the Swaps fall within Level 2 of the fair value hierarchy.   As a result, the Company has determined that its derivative valuations are classified in Level 2 of the fair value hierarchy. There were no transfers between Level 2 and Level 3 during the years ended December 31, 2018, 2017 and 2016.
 
Carrying values and fair values of financial instruments that are not carried at fair value are as follows (amounts in thousands):
 
December 31, 2018
 
December 31, 2017
Long term debt, including current portion:
 

 
 

Carrying value
$
1,816,450

 
1,718,297

Fair value (a)
1,218,606

 
1,645,616


 
(a) 
The fair value is based on market quotations from third party financial institutions and is classified as Level 2 in the hierarchy.
 
The Company’s other financial instruments, including cash and cash equivalents, accounts receivable and accounts payable are carried at cost, which approximates their fair value because of their short-term maturity.