Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

Fair Value Measurements
12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
According to the FASB ASC Topic 820, Fair Value Measurement, 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, 2020 and December 31, 2019 (amounts in thousands): 
  Level 1 Level 2 Level 3 Total
December 31, 2020
Interest rate cap agreement - asset (a) $ —  $ 117  $ —  $ 117 
Total $ —  $ 117  $ —  $ 117 
December 31, 2019
Interest rate cap agreement - asset (a) $ —  $ 2,959  $ —  $ 2,959 
Total $ —  $ 2,959  $ —  $ 2,959 

(a)    Interest rate cap asset value is included in non-current Other assets on the consolidated balance sheets.

The Company has determined that the significant inputs used to value the interest rate cap fall within Level 2 of the fair value hierarchy.  As a result, the Company has determined that its interest rate cap valuation is classified in Level 2 of the fair value hierarchy.
Carrying values and fair values of financial instruments that are not carried at fair value are as follows (amounts in thousands):
  December 31, 2020 December 31, 2019
Long term debt, including current portion
Carrying value $ 979,219  986,444 
Fair value (a) $ 883,377  $ 857,717 

(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, restricted cash, accounts receivable, accounts payable and contingent dealer liabilities, are carried at cost, which approximates their fair value because of their nature.