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, 2015 and 2014 were
as follows:
December 31, 2015
(in thousands) Total Level 1 Level 2 Level 3
Assets:
U.S. government bonds $ 17,210 $ 17,210 § - $ -
Liabilities:
Interest rate swap $ (548) § - $ (548) $ -
December 31, 2014
(in thousands) Total Level 1 Level 2 Level 3
Liabilities:
Interest rate swap $ (583) $ - $ (583) § -
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, 2015 and 2014
was as follows:
2015 2014
Carrying Fair Carrying Fair
(in thousands) Value Value Value Value
Assets:
U.S. government bonds $ 17,237, $ 17,210 §$ - $ -
Liabilities:
Long-term debt (210,172) (211,962) (224,307) (270,191)
Interest rate swap liability (548) (548) (583) (583)
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 our interest rate swap
represents the estimated cost to terminate this agreement as of December 31, 2015 and 2014
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.
