Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

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FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract]  
FAIR VALUE ACCOUNTING
NOTE 15. 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, 2016, 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 value of other long-term liabilities approximates fair value as the related interest rates approximate rates currently available to the company. The following table summarizes the fair value of our financial assets that are measured at fair value:
 
 
 
March 31, 2016
 
 
 
Total Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
and Carrying Value
 
Fair Value Measurement Category
 
 
 
on Balance Sheet
 
Level 1
 
Level 2
 
Level 3
 
 
 
(Dollars in thousands)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
84
 
$
84
 
$
—
 
$
—
 
Trade accounts receivable, net
 
 
31,845
 
 
31,845
 
 
—
 
 
—
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
 
4,174
 
 
4,174
 
 
—
 
 
—
 
Accrued expenses including estimated fair value of contingent earn-out consideration
 
 
11,262
 
 
10,721
 
 
—
 
 
541
 
Accrued interest
 
 
52
 
 
52
 
 
—
 
 
—
 
Long term liabilities including estimated fair value of contingent earn-out consideration
 
 
68
 
 
35
 
 
—
 
 
33
 
Long-term debt and capital lease obligations less unamortized discount and debt issuance costs
 
 
273,067
 
 
273,067
 
 
—
 
 
—
 
Fair value of interest rate swap
 
 
2,556
 
 
—
 
 
2,556
 
 
—