December 31, 2019
December 31, 2018
(in thousands)
Assets
Interest rate swap
$—
$1,623
Liabilities
Interest rate swap
$37
$—

text: 6. Financial Instruments
text: The composition of financial instruments is as follows:
text: The fair values of the Company’s financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants and is recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The levels are described below:
text: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available.
text: The Company classifies its financial instrument within Level 2 of the fair value hierarchy on the basis of models utilizing market observable inputs. The interest rate swap has been valued on the basis of valuations provided by third-party pricing services, as derived from standard valuation or pricing models. Market-based observable inputs for the interest rate swap include one month LIBOR-based yield curves over the term of the swap. The Company reviews third-party pricing provider models, key inputs and assumptions and understands the pricing processes at its third-party providers in determining the overall reasonableness of the fair value of its Level 2 financial instruments. The Company also considers the risk of nonperformance by assessing the swap counterparty's credit risk in the estimate of fair value of the interest rate swap. As of December 31, 2019 and 2018, the Company has not made any adjustments to the valuations obtained from its third party pricing providers.

Questions:
question: How is the fair value of the company's financial instrument defined?
answer: The fair values of the Company’s financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants and is recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities.
question: What was the interest rate swap in 2019 and 2018 respectively?
answer: 0
1,623
scale: thousand
question: In which year was interest rate swap less than 1,000 thousands?
answer: 2019
derivation: locate and analyze interest rate swap in row 4
question: What was the change in the interest rate swap from 2018 to 2019?
answer: -1623
derivation: 0 - 1,623
scale: thousand
question: What was the average interest rate swap liabilities for 2018 and 2019?
answer: 18.5
derivation: (37 + 0) / 2
scale: thousand
question: What are the 3 levels of subjectivity?
answer: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data
Level 3: Unobservable inputs are used when little or no market data is available