Fair Value

The Company established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Levels within the hierarchy are defined as follows:

Level 1—Unadjusted quoted prices in active markets for identical assets and liabilities;

Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly; and

Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and related party payables are considered to be representative of their respective fair values due to the immediate or short-term nature or maturity. The available for sale securities (Level 1) totaled $389,000 and (Level 2) $0 as of December 31, 2016 and (Level 1) totaled $5.3 million and (Level 2) was $0 as of December 31, 2015.

The Company measures certain non-financial assets and liabilities at fair value that are recognized or disclosed on a nonrecurring basis (e.g. impaired goodwill and property, plant and equipment classified as held for sale). During the fourth quarter of the fiscal year 2015, a $3.3 million impairment charge was recorded for the Longaberger facilities held for sale. The facilities held for sale served as the previous corporate headquarters, day care center, and a separate manufacturing site. The fair value of the net assets to be sold was determined using Level 3 inputs utilizing a market participant bid. See additional discussion regarding the Company’s assets held for sale in Note (6), Assets Held for Sale, to the consolidated financial statements included in this report.

The Company recorded goodwill and intangible impairment charges of approximately $6.7 million and $192,000 during the fiscal year ended December 31, 2016 and 2015, respectively.

In addition to assets and liabilities - which are recorded at fair value on a recurring basis - the Company recorded certain assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities are measured at fair value on a nonrecurring basis and are primarily related to write-downs associated with goodwill and other intangible assets. The fair value measurement for goodwill and other intangible assets was developed using significant unobservable inputs (Level 3) utilizing a discounted cash flow model.

The Company qualified for an extinguishment of debt modification assessment as a result of the late filings and the amended amortization schedule of the loan. This debt modification resulted in a loss on extinguishment of debt of approximately $1.9 million. The fair value measurement of the Dominion debt was developed using significant unobservable inputs (Level 3) utilizing a discounted cash flow model to find the present value of the debt.

The Company's estimate of the fair value of the debt and capital lease obligations, using Level 2 and Level 3 inputs, is summarized as follows (in thousands):



	December 31, 2016		December 31, 2015
Recorded Amount:
Long-term debt, including current portion	$	13,533	$	15,832
Capital leases, including current portion	16,139		16,529
Total debt and capital lease commitments	$	29,672	32,361

Fair Value:
Long-term debt, including current portion	$	11,976	$	14,024
Capital leases, including current portion	$	15,329	$	10,040
Total debt and capital lease commitments	$	27,305	$	24,064