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Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation  
Fair value, schedule of assets and liabilities measures on recurring basis The tables below aggregate the fair values of these financial assets and liabilities by their levels in the fair value hierarchy.
(Amounts in thousands)As of September 30, 2020
TotalLevel 1Level 2Level 3
Real estate fund investments$3,739 $— $— $3,739 
Deferred compensation plan assets ($9,703 included in restricted cash and $88,840 in other assets)
98,543 59,597 — 38,946 
Loans receivable ($42,174 included in investments in partially owned entities and $5,335 in other assets)
47,509 — — 47,509 
Interest rate swaps (included in other assets)17 — 17 — 
Total assets$149,808 $59,597 $17 $90,194 
Mandatorily redeemable instruments (included in other liabilities)$49,947 $49,947 $— $— 
Interest rate swaps (included in other liabilities)73,536 — 73,536 — 
Total liabilities$123,483 $49,947 $73,536 $— 
(Amounts in thousands)As of December 31, 2019
TotalLevel 1Level 2Level 3
Marketable securities$33,313 $33,313 $— $— 
Real estate fund investments222,649 — — 222,649 
Deferred compensation plan assets ($11,819 included in restricted cash and $91,954 in other assets)
103,773 71,338 — 32,435 
Interest rate swaps (included in other assets)4,327 — 4,327 — 
Total assets$364,062 $104,651 $4,327 $255,084 
Mandatorily redeemable instruments (included in other liabilities)
$50,561 $50,561 $— $— 
Interest rate swaps (included in other liabilities)40,354 — 40,354 — 
Total liabilities$90,915 $50,561 $40,354 $— 
Schedule of derivative assets at fair value
The following tables summarize our consolidated derivative instruments, all of which hedge variable rate debt, as of September 30, 2020 and December 31, 2019.
(Amounts in thousands)As of September 30, 2020
Variable Rate
Hedged Item (Interest rate swaps)Fair ValueNotional AmountSpread over LIBORInterest RateSwapped RateExpiration Date
Included in other assets:
Other$17 $175,000 
Included in other liabilities:
Unsecured term loan$63,437 $750,000 
(1)
L+100
1.15%3.87%10/23
33-00 Northern Boulevard mortgage loan9,065 100,000 
L+180
1.96%4.14%1/25
888 Seventh Avenue mortgage loan1,034 375,000 
L+170
1.84%3.25%12/20
$73,536 $1,225,000 
____________________
(1)Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%.
15.    Fair Value Measurements - continued
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued
Derivatives and Hedging - continued
(Amounts in thousands)As of December 31, 2019
Variable Rate
Hedged Item (Interest rate swaps)Fair ValueNotional AmountSpread over LIBORInterest RateSwapped RateExpiration Date
Included in other assets:
770 Broadway mortgage loan$4,045 $700,000 
L+175
3.46%2.56%9/20
888 Seventh Avenue mortgage loan218 375,000 
L+170
3.44%3.25%12/20
Other64 175,000 
$4,327 $1,250,000 
Included in other liabilities:
Unsecured term loan$36,809 $750,000 
L+100
2.80%3.87%10/23
33-00 Northern Boulevard mortgage loan3,545 100,000 
L+180
3.52%4.14%1/25
$40,354 $850,000 
Schedule of derivative liabilities at fair value
The following tables summarize our consolidated derivative instruments, all of which hedge variable rate debt, as of September 30, 2020 and December 31, 2019.
(Amounts in thousands)As of September 30, 2020
Variable Rate
Hedged Item (Interest rate swaps)Fair ValueNotional AmountSpread over LIBORInterest RateSwapped RateExpiration Date
Included in other assets:
Other$17 $175,000 
Included in other liabilities:
Unsecured term loan$63,437 $750,000 
(1)
L+100
1.15%3.87%10/23
33-00 Northern Boulevard mortgage loan9,065 100,000 
L+180
1.96%4.14%1/25
888 Seventh Avenue mortgage loan1,034 375,000 
L+170
1.84%3.25%12/20
$73,536 $1,225,000 
____________________
(1)Remaining $50,000 balance of our unsecured term loan bears interest at a floating rate of LIBOR plus 1.00%.
15.    Fair Value Measurements - continued
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - continued
Derivatives and Hedging - continued
(Amounts in thousands)As of December 31, 2019
Variable Rate
Hedged Item (Interest rate swaps)Fair ValueNotional AmountSpread over LIBORInterest RateSwapped RateExpiration Date
Included in other assets:
770 Broadway mortgage loan$4,045 $700,000 
L+175
3.46%2.56%9/20
888 Seventh Avenue mortgage loan218 375,000 
L+170
3.44%3.25%12/20
Other64 175,000 
$4,327 $1,250,000 
Included in other liabilities:
Unsecured term loan$36,809 $750,000 
L+100
2.80%3.87%10/23
33-00 Northern Boulevard mortgage loan3,545 100,000 
L+180
3.52%4.14%1/25
$40,354 $850,000 
Fair value measurements, nonrecurring
(Amounts in thousands)As of September 30, 2020
TotalLevel 1Level 2Level 3
Investment in Fifth Avenue and Times Square JV$2,811,374 $— $— $2,811,374 
Schedule of carrying amounts and fair values of financial instruments The table below summarizes the carrying amounts and fair value of these financial instruments.
(Amounts in thousands)As of September 30, 2020As of December 31, 2019
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Cash equivalents$1,248,051 $1,248,000 $1,276,815 $1,277,000 
Debt:
Mortgages payable$5,661,132 $5,660,000 $5,670,016 $5,714,000 
Senior unsecured notes450,000 468,000 450,000 468,000 
Unsecured term loan800,000 800,000 750,000 750,000 
Unsecured revolving credit facilities575,000 575,000 575,000 575,000 
Total$7,486,132 
(1)
$7,503,000 $7,445,016 
(1)
$7,507,000 
____________________
(1)Excludes $29,000 and $38,407 of deferred financing costs, net and other as of September 30, 2020 and December 31, 2019, respectively.
Real estate fund investments  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation  
Fair value inputs quantitative information Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these real estate fund investments.
RangeWeighted Average
(based on fair value of investments)
Unobservable Quantitative InputSeptember 30, 2020December 31, 2019September 30, 2020December 31, 2019
Discount rates
7.8% to 15.0%
8.2% to 12.0%
10.0%9.3%
Terminal capitalization rates
5.5% to 10.1%
4.6% to 8.2%
10.1%5.3%
Summary of changes in level 3 plan assets
The table below summarizes the changes in the fair value of real estate fund investments that are classified as Level 3.
(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
2020201920202019
Beginning balance$17,453 $306,596 $222,649 $318,758 
Purchases/additional fundings502 — 6,502 4,000 
Net unrealized loss on held investments(14,216)— (225,412)(16,162)
Ending balance$3,739 $306,596 $3,739 $306,596 
Deferred Compensation Plan Assets  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation  
Schedule of changes in fair value of plan assets
The table below summarizes the changes in the fair value of deferred compensation plan assets that are classified as Level 3.
(Amounts in thousands)For the Three Months Ended September 30,For the Nine Months Ended September 30,
2020201920202019
Beginning balance$36,172 $21,991 $32,435 $37,808 
Purchases666 5,437 7,615 8,314 
Sales— (652)(2,832)(20,807)
Realized and unrealized gains2,116 116 925 854 
Other, net(8)285 803 1,008 
Ending balance$38,946 $27,177 $38,946 $27,177 
Loans Receivable  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation  
Fair value inputs quantitative information Significant unobservable quantitative inputs in the table below were utilized in determining the fair value of these loans receivable.
September 30, 2020
RangeWeighted Average
(based on fair value of investments)
Unobservable Quantitative Input
Discount rates
6.0% to 6.5%
6.1%
Terminal capitalization rates5.0%5.0%
Summary of changes in level 3 plan assets
The table below summarizes the changes in fair value of loans receivable that are classified as Level 3.
(Amounts in thousands)For the Three Months Ended September 30, 2020For the Nine Months Ended September 30, 2020
Beginning balance$46,675 $59,251 
Credit losses— (13,369)
Interest accrual834 1,627 
Ending balance$47,509 $47,509