CLB 2018 Annual Report

F-27 At December 31, 2018, we had fixed rate debt aggregating $200 million and variable rate debt aggregating $92 million, after taking into account the effect of the swaps. The fair values of outstanding derivative instruments at December 31, 2018 and 2017 are as follows (in thousands): Fair Value of Derivatives 2018 2017 Balance Sheet Classification Derivatives designated as hedges: 5 yr Interest Rate Swap $ 135 $ 70 Other Assets 10 yr Interest Rate Swap (70) (492) Other (Liabilities) $ 65 $ (422) The fair value of all outstanding derivatives was determined using a model with inputs that are observable in the market or can be derived from or corroborated by observable data. The effect of the interest rate swaps on the Consolidated Statements of Operations for the years ended December 31, 2018 and 2017 was as follows (in thousands): 2018 2017 Income Statement Classification Derivatives designated as hedges: 5 yr Interest Rate Swap $ (64) $ 165 Interest Expense 10 yr Interest Rate Swap 133 361 Interest Expense $ 69 $ 526 16. FINANCIAL INSTRUMENTS The Company's only financial assets and liabilities which are measured at fair value on a recurring basis relate to certain aspects of the Company's benefit plans and our derivative instruments. We use the market approach to value certain assets and liabilities at fair value using significant other observable inputs (Level 2) with the assistance of a third party specialist. We do not have any assets or liabilities measured at fair value on a recurring basis using quoted prices in an active market (Level 1) or significant unobservable inputs (Level 3). Gains and losses related to the fair value changes in the deferred compensation assets and liabilities are recorded in General and Administrative Expenses in the Consolidated Statements of Operations. Gains and losses related to the fair value of the interest rate swaps are recorded in Other Comprehensive Income. The following table summarizes the fair value balances (in thousands): Fair Value Measurement at December 31, 2018 Total Level 1 Level 2 Level 3 Assets: Deferred compensation assets (1) $ 42,161 $ — $ 42,161 $ — 5 year interest rate swap 135 — 135 — $ 42,296 $ — $ 42,296 $ — Liabilities: Deferred compensation plan $ 33,287 $ — $ 33,287 $ — 10 year interest rate swap 70 — 70 — $ 33,357 $ — $ 33,357 $ —