For assets and liabilities measured at fair value on a recurring basis, the fair value measure-
ment by levels within the fair value hierarchy used as of December 3 1, 2017 and 2016 were
as follows:
December 31, 2017
(in thousands) Total Level I Level 2 Level 3
Liabilities:
Interest rate swap $ (374) §$ - $ (374, §$ -
December 31, 2016
(in thousands) Total Level 1 Level 2 Level 3
Liabilities:
Interest rate swap $ (453) §$ - $ (453) $ -
The carrying value of certain financial instruments included in the accompanying Consoli-
dated Balance Sheets, along with the related fair value, as of December 31, 2017 and 2016
was as follows:
2017 2016
Carrying Fair Carrying Fair
(in thousands) Value Value Value Value
Liabilities:
Long-term debt $ (207,709) $ (234,509) $ (210,443) $ (264,700)
Interest rate swap liability $ (374) §$ (374) $ (453) §$ (453)
The fair value of long-term debt has been determined by discounting the future cash flows
using current market interest rates for similar financial instruments of the same duration. The
fair value for long-term debt shown above does not purport to represent the amounts at which
those debt obligations would be settled. The fair market value of the interest rate swap
represents the estimated cost to terminate this agreement as of December 31, 2017 and 2016
based upon the then-current interest rates and the related credit risk.
The carrying values of our Cash and Cash Equivalents, Accounts Receivable and Accounts
Payable approximate their fair values because of their short maturity dates. The carrying
value of our CIAC approximates its fair value because it is expected that this is the amount
that will be recovered in future rates.
Note 8 — Income Taxes
On December 22, 2017, the U.S. government enacted comprehensive tax legislation
commonly referred to as the Tax Cuts and Jobs Act (the TCJA). The TCJA makes broad and
complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S.
federal corporate tax rate from 35 percent to 21 percent; (2) elimination of the corporate
alternative minimum tax (AMT) and changing how existing AMT credits can be realized; (3)
changing rules related to usage and limitation of net operating loss carryforwards created in
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