Summary of Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2020

Investments, All Other Investments [Abstract]

Summary of Fair Value of Financial Instruments

Certain of our financial instruments are not measured at fair value on a recurring basis. The estimates presented are not necessarily indicative of the amounts at which these instruments could be purchased, sold or settled. The carrying amounts and estimated fair values of financial instruments were as follows (in thousands):



	June 30, 2020				December 31, 2019
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets measured at fair value:
Restricted investment	$	374	$	374	$	1,195	$	1,195
Financial liabilities measured at fair value:
Deferred compensation plan	$	2,026	$	2,026	$	4,729	$	4,729
Contingent consideration	2,225		2,225		5,627		5,627
Financial assets not measured at fair value:
Cash and cash equivalents	$	65,518	$	65,518	$	35,349	$	35,349
Restricted cash	37,175		37,175		17,900		17,900
Accounts receivable, net	4,331		4,331		7,241		7,241
Due from affiliates	307		307		357		357
Due from Ashford Trust	—		—		4,805		4,805
Due from Braemar	846		846		1,591		1,591
Investments in unconsolidated entities	3,729		3,729		3,476		3,476
Financial liabilities not measured at fair value:
Accounts payable and accrued expenses	$	35,987	$	35,987	$	39,160	$	39,160
Dividends payable	11,877		11,877		4,725		4,725
Due to affiliates	1,047		1,047		1,011		1,011
Due to Ashford Trust	516		516		—		—
Other liabilities	32,659		32,659		13,868		13,868
Notes payable	62,552		58,517 to 64,677		36,810		34,705 to 38,359

Restricted investment. These financial assets are carried at fair value based on quoted market prices of the underlying investments. This is considered a Level 1 valuation technique.

Deferred compensation plan. The liability resulting from the deferred compensation plan is carried at fair value based on the closing prices of the underlying investments. This is considered a Level 1 valuation technique.

Contingent consideration. The liability associated with JSAV’s acquisition of BAV is carried at fair value based on the terms of the acquisition agreements and any changes to fair value are recorded in “other” operating expenses in our condensed consolidated statements of operations. See note 7.

Cash, cash equivalents and restricted cash. These financial assets bear interest at market rates and have maturities of less than 90 days. The carrying values approximate fair value due to the short-term nature of these financial instruments. This is considered a Level 1 valuation technique.

Accounts receivable, net, due from affiliates, due from Ashford Trust, due from Braemar, accounts payable and accrued expenses, dividends payable, due to affiliates, due to Ashford Trust and other liabilities. The carrying values of these financial instruments approximate their fair values due primarily to the short-term nature of these financial instruments. This is considered a Level 1 valuation technique.

Investments in unconsolidated entities. The carrying value of the asset resulting from investment in unconsolidated entities approximates fair value based on recent observable transactions. This is considered a level 2 valuation technique. See note 2.

Notes payable. The fair value of notes payable is based on credit spreads on observable transactions of a similar nature and is considered a Level 2 valuation technique.