12. FAIR VALUE

Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date.

The guidance establishes a framework for measuring fair value which utilizes observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. Preference is given to observable inputs.

These two types of inputs create the following three-level fair value hierarchy:


Level 1:	Quoted prices for identical assets or liabilities in active markets.

Level 2:	Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs or significant value drivers are observable.

Level 3:	Significant inputs to the valuation model that are unobservable.

The Company’s financial assets and liabilities include cash and cash equivalents, accounts receivable, debt obligations, accounts payable, and accrued liabilities. The carrying amounts reported in the condensed consolidated balance sheets for these assets approximate fair value because of the immediate or short-term maturities of these financial instruments.

The following table presents the Company’s financial assets that are accounted for at fair value on a recurring basis as of June 30, 2019 and December 31, 2018, respectively, by level within the fair value hierarchy (in thousands):


	June 30, 2019
	Level 1		Level 2		Level 3
Assets (liabilities)
Pension plan assets	$	5,773	$	—	$	—
Other long-term assets		4,471		—		—
Interest rate swaps		—		(264)		—


	December 31, 2018
	Level 1		Level 2		Level 3
Assets
Pension plan assets	$	5,231	$	—	$	—
Other long-term assets		3,962		—		—
Interest rate swaps		—		434		—