FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2017

We have classified assets and liabilities required to be measured at fair value into the fair value hierarchy as set forth below:



Level 1	–	quoted prices in active markets for identical assets and liabilities.
Level 2	–	observable inputs other than quoted prices for identical assets and liabilities.
Level 3	–	unobservable inputs for which there is little or no market data available, which required us to develop our own assumptions.

The following table summarizes information regarding financial assets and financial liabilities that are measured at fair value as of September 30, 2017 and December 31, 2016.



(in thousands)	Book Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Balance as of September 30, 2017
Assets:
Cash and cash equivalents	$	22,690	$	22,690	$	—	$	—
Restricted cash	446		446		—		—
Interest rate swaps	8,570		—		8,570		—
Total assets	$	31,706	$	23,136	$	8,570	$	—

Liabilities:
Interest rate swaps	1,093		$	—	$	1,093	$	—
Total liabilities	$	1,093	$	—	$	1,093	$	—

Balance as of December 31, 2016
Assets:
Cash and cash equivalents	$	35,409	$	35,409	$	—	$	—
Restricted cash	714		714		—		—
Interest rate swaps	10,748		—		10,748		—
Total assets	$	46,871	$	36,123	$	10,748	$	—

Liabilities:
Interest rate swaps	$	392	$	—	$	392	$	—
Total liabilities	$	392	$	—	$	392	$	—

There were no changes among the levels during the first nine months of 2017.

The fair value of outstanding debt, including current maturities, was approximately $1,130 million and $1,305 million as of September 30, 2017 and December 31, 2016, respectively. These Level 2 fair value estimates were based on similar debt with the same maturities, company credit rating and interest rates.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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