Table:
|  |  | As of December 31, |  |  |
| --- | --- | --- | --- | --- |
|  | 2019 |  | 2018 |  |
|  | Fair Value | Carrying Value | Fair Value | Carrying Value |
| 2022 Notes | $215,801 | $79,224 | $ 189,802 | $94,097 |
Paragraphs:
As of December 31, 2019 and 2018, the fair value of the 2022 Notes, which was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the 2022 Notes in an over-the-counter market (Level 2), and carrying value of debt instruments (carrying value excludes the equity component of the Company’s convertible notes classified in equity) were as follows (in thousands):
In connection with the issuance of the 2022 Notes, the Company entered into capped call transactions with certain counterparties affiliated with the initial purchasers and others. The capped call transactions are expected to reduce potential dilution of earnings per share upon conversion of the 2022 Notes.
Under the capped call transactions, the Company purchased capped call options that in the aggregate relate to the total number of shares of the Company’s common stock underlying the 2022 Notes, with an initial strike price of approximately $33.71 per share, which corresponds to the initial conversion price of the 2022 Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the 2022 Notes, and have a cap price of approximately $47.20.
The cost of the purchased capped calls of $12.9 million was recorded to shareholders’ equity and will not be re-measured.
Based on the closing price of the Company’s common stock of $78.08 on December 31, 2019, the if-converted value of the 2022 Notes was more than their respective principal amounts.
Question:
In which year was the 2022 Notes fair value less than 200,000 thousands?
Answer: Because locate and analyze 2022 Notes in row 4, the answer is: 2018.