Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.20.1
Fair Value Measurements
3 Months Ended
Mar. 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 that are measured on a recurring basis at March 31, 2020 and December 31, 2019 (amounts in thousands): 
  Level 1 Level 2 Level 3 Total
March 31, 2020
Interest rate cap agreement - assets (a) $ —    $ 962    $ —    $ 962   
Total $ —    $ 962    $ —    $ 962   
December 31, 2019
Interest rate cap agreement - assets (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 condensed 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):
  March 31, 2020 December 31, 2019
Long term debt, including current portion:
Carrying value $ 1,031,888    $ 986,444   
Fair value (a) $ 763,866    $ 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, carrying values approximate their fair values because of their nature.