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 31, 2018 and 2017 were
as follows:
December 31, 2018
(in thousands) Total Level 1 Level 2 Level 3
Liabilities:
Interest rate swap $ (263) §$ - $ (263) §$ -
December 31, 2017
(in thousands) Total Level I Level 2 Level 3
Liabilities:
Interest rate swap $ (374) $ - $ (374) $ -
The carrying value of certain financial instruments included in the accompanying Consolidated
Balance Sheets, along with the related fair value, as of December 31, 2018 and 2017 was as
follows:
2018 2017
Carrying Fair Carrying Fair
(in thousands) Value Value Value Value
Liabilities:
Long-term debt $ (210,588) $ (234,381) $ (207,709) $ (234,509)
Interest rate swap liability $ (263) § (263) $ 374) § (374)
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, 2018 and 2017
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.
27
