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FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2017
FAIR VALUE MEASUREMENTS  
Schedule of assets and liabilities measured at fair value on a recurring basis

 

 

March 31, 2017

 

 

 

Quoted Prices in
Active Markets

 

Other Observable
Inputs

 

Unobservable
Inputs

 

 

 

$s in thousands

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Fixed-income securities (1)

 

$
606

 

$
3,476

 

$

—

 

$
4,082

 

Money market funds (2)

 
1,712

 

—

 

—

 
1,712

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
2,318

 

$
3,476

 

$

—

 

$
5,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Interest rate swap agreement (3)

 

$

—

 

$
2,376

 

$

—

 

$
2,376

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

—

 

$
2,376

 

$

—

 

$
2,376

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

 

 

Quoted Prices in
Active Markets

 

Other Observable
Inputs

 

Unobservable
Inputs

 

 

 

$s in thousands

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Fixed-income securities (1)

 

$
607

 

$
3,473

 

$

—

 

$
4,080

 

Money market funds (2)

 
1,707

 

—

 

—

 
1,707

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
2,314

 

$
3,473

 

$

—

 

$
5,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Interest rate swap agreement (3)

 

$

—

 

$
3,198

 

$

—

 

$
3,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

—

 

$
3,198

 

$

—

 

$
3,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

We invest a portion of our Restricted cash and investments in fixed-income securities, including U.S. Treasury and U.S. agency securities. We measure the fair value of U.S. Treasury securities using quoted prices for identical assets in active markets. We measure the fair value of U.S. agency securities using observable market activity for similar assets. The fair value of our fixed-income securities approximates our cost basis in the investments.

 

(2)

We invest a portion of our Restricted cash and investments in money market funds. We measure the fair value of these money market fund investments using quoted prices for identical assets in active markets.

 

(3)

In order to manage interest rate exposure, we entered into an interest rate swap agreement in October 2014 that effectively converts a portion of our variable-rate debt to a fixed interest rate. The swap is designated as a cash flow hedge, with gains and losses deferred in other comprehensive income to be recognized as an adjustment to interest expense in the same period that the hedged interest payments affect earnings. The interest rate swap has an effective date of December 31, 2014 with an initial notional amount of $250.0 million. The fair value of the interest rate swap agreement represents the difference in the present value of cash flows calculated at the contracted interest rates and at current market interest rates at the end of the period. We calculate the fair value of the interest rate swap agreement quarterly based on the quoted market price for the same or similar financial instruments. The fair value of the interest rate swap agreement is included in Other long-term liabilities in the Company’s consolidated balance sheet as of March 31, 2017 and December 31, 2016.