Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v3.8.0.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS AND DISCLOSURES
NOTE 16. FAIR VALUE MEASUREMENTS
 
FASB ASC Topic 820 Fair Value Measurements and Disclosures, established a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring fair value. This framework defines three levels of inputs to the fair value measurement process and requires that each fair value measurement be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety. The three broad levels of inputs defined by the FASB ASC Topic 820 hierarchy are as follows:
 
·
Level 1 Inputs—quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date;
 
·
Level 2 Inputs—inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability; and
 
·
Level 3 Inputs—unobservable inputs for the asset or liability. These unobservable inputs reflect the entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances (which might include the reporting entity’s own data).
 
As of March 31, 2018, the carrying value of cash and cash equivalents, trade accounts receivables, accounts payable, accrued expenses and accrued interest approximates fair value due to the short-term nature of such instruments. The carrying amount of the Notes at March 31, 2018 was $255.0 million compared to the estimated fair value of $247.2 million, based on the prevailing interest rates and trading activity of our Notes.
 
We have certain assets that are measured at fair value on a non-recurring basis that are adjusted to fair value only when the carrying values exceed the fair values. The categorization of the framework used to price the assets is considered Level 3 due to the subjective nature of the unobservable inputs used when estimating the fair value.
 
The following table summarizes the fair value of our financial assets and liabilities that are measured at fair value:
 
 
 
March 31, 2018
 
 
 
Carrying Value
 
Fair Value Measurement Category
 
 
 
on Balance Sheet
 
Level 1
 
Level 2
 
Level 3
 
 
 
(Dollars in thousands)
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of other indefinite-lived intangible assets
 
$
313
 
 
—
 
 
—
 
$
313
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of contingent earn-out consideration included in accrued expenses
 
 
69
 
 
—
 
 
—
 
 
69
 
Long-term debt and capital lease obligations less unamortized debt issuance costs
 
 
249,881
 
 
—
 
 
247,228
 
 
—