Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Measurements

Fair Value Measurements

NOTE 9 — Fair Value Measurements

Our financial instruments are classified and disclosed in one of the following three categories:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following table summarizes the valuation of our financial instrument pricing levels as of December 31, 2018 and 2017:

	Total		Level 1		Level 2		Level 3
2018
Equity investments	$	995,000	$	995,000	$	—	$	—
2017
Equity investments	$	1,052,000	$	1,052,000	$	—	$	—

Our equity investments consist of mutual funds.  These investments are included in other assets in our consolidated balance sheets. Gains and losses on our equity investments for the year ended December 31, 2018 are as follows:

Net losses recognized during the period on equity investments	$	(90,000)
Less: net gains recognized during the period on equity investments sold during the period		(15,000)
Unrealized losses recognized during the period on equity investments still held at period end	$	(105,000)

The carrying amounts of other financial instruments reported in our consolidated balance sheets for current assets and current liabilities approximate their fair values because of the short maturity of these instruments.

There were no borrowings outstanding under our credit facility at December 31, 2018.  At December 31, 2017, there was $3,240,000 outstanding under our revolving credit agreement.  The borrowings under our revolving credit agreement bear interest at the variable rate described in NOTE 5 — Long-Term Debt and therefore we believe approximate fair value.

The following table summarizes the valuation of our pricing levels for non-financial assets that are measured at fair value on a non-recurring basis as of December 31, 2018 and 2017:

	Total		Level 1		Level 2		Level 3
2018
Long-lived assets held for sale	$	531,000	$	—	$	—	$	531,000
2017
Long-lived assets held for sale	$	2,455,000	$	—	$	—	$	2,455,000

Fair value of the long-lived assets held for sale was determined using a valuation methodology which gave specific consideration to the value of the owned real estate.