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4. FINANCIAL INSTRUMENTS
Applicable accounting
standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date (exit price) and establishes a fair-value hierarchy that prioritizes
the inputs used to measure fair value using the following definitions (from highest to lowest priority):
| • | Level 1 inputs are unadjusted quoted prices in active markets for
identical assets or liabilities that are observable at the measurement date. |
| • | Level 2 inputs include quoted prices for similar assets and liabilities
in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived
principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). |
| • | Level 3 includes unobservable inputs that reflect management’s
assumptions about what factors market participants would use in pricing the asset or liability. These inputs are developed based
on the best information available, including internal data. |
The Company believes
that the fair values of our assets and liabilities approximate their reported carrying amounts. The following table presents information
about assets that were recorded at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 and indicate
the fair value hierarchy:
| | |
September 30, 2017 | |
| (thousands of dollars) | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| Current Assets | |
| | | |
| | | |
| | | |
| | |
| Marketable securities and short term investments | |
$ | 1,060 | | |
$ | - | | |
$ | - | | |
$ | 1,060 | |
| Total current assets recorded at fair value | |
$ | 1,060 | | |
$ | - | | |
$ | - | | |
$ | 1,060 | |
| Non-Current Assets | |
| | | |
| | | |
| | | |
| | |
| Restricted cash | |
| 3,668 | | |
| - | | |
| - | | |
| 3,668 | |
| Total non-current assets recorded at fair value | |
$ | 3,668 | | |
$ | - | | |
$ | - | | |
$ | 3,668 | |
| | |
| | | |
| | | |
| | | |
| | |
| | |
| December 31, 2016 | |
| | |
| Level 1 | | |
| Level 2 | | |
| Level 3 | | |
| Total | |
| Non-Current Assets | |
| | | |
| | | |
| | | |
| | |
| Restricted cash | |
$ | 3,964 | | |
$ | - | | |
$ | - | | |
$ | 3,964 | |
| Total non-current assets recorded at fair value | |
$ | 3,964 | | |
$ | - | | |
$ | - | | |
$ | 3,964 | |
|