Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.19.3
Fair Value Measurements
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements

13.

Fair Value Measurements

The Company determines fair value measurements in accordance with ASC Topic 820, which establishes a fair value hierarchy under which an asset or liability is categorized based on the lowest level of input significant to its fair value measurement. The levels of input defined by ASC Topic 820 are as follows:

Level 1 – quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date;

Level 2 – other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3 – unobservable and should be used to measure fair value to the extent that observable inputs are not available.

Below is a summary of liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of September 30, 2019:

 

 

Carry

 

 

Fair Value

 

Description

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Interest rate swap liabilities (1)

 

$

(18,988

)

 

$

 

 

$

 

 

$

(18,988

)

 

(1)

See further discussion of interest rate swaps at Note 6.

Below is a summary of liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of December 31, 2018:

 

 

Carry

 

 

Fair Value

 

Description

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Interest rate swap liabilities (1)

 

$

(5,093

)

 

$

 

 

$

 

 

$

(5,093

)

 

(1)

See further discussion of interest rate swaps at Note 6.

Below is a reconciliation of the beginning and ending balance for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

 

Liabilities (1)

 

 

 

2019

 

Beginning balance - January 1

 

$

5,093

 

Total loss included in accumulated other comprehensive loss

 

 

15,036

 

Settlements included in interest expense

 

 

(1,141

)

Ending balance - September 30

 

$

18,988

 

(1) Represents interest rate swap liabilities.  See further discussion of interest rate swaps at Note 6.

The Company uses the market approach for fair value measurements on a nonrecurring basis in the impairment evaluations of its long-lived assets (see Note 11 and Note 12). See additional explanation of fair value measurement techniques used for long-lived assets, goodwill and intangible assets in “Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed February 28, 2019.  There were no changes in valuation techniques and there were no transfers in or out of Level 1, Level 2 or Level 3 during the nine months ended September 30, 2019.