Impairment Loss on Real Estate Assets

12 Months Ended

Dec. 31, 2018

Piedmont recorded the following impairment losses on real estate assets for the years ended December 31, 2018, 2017, and 2016 (in thousands):



	2018		2017		2016
150 West Jefferson ⁽¹⁾	$	—	$	—	$	8,259
9221 Corporate Boulevard ⁽²⁾	—		—		2,692
9200 and 9211 Corporate Boulevard ⁽³⁾	—		—		22,950
Disposal Group of 13 Assets ⁽⁴⁾	—		46,461		—
Total impairment loss on real estate assets ⁽⁵⁾	$	—	$	46,461	$	33,901


⁽¹⁾	Piedmont recognized an impairment loss on real estate assets based upon the difference between the carrying value of the asset including a proportionate amount of goodwill (because the asset met the definition of a disposed "business" at the time of measurement) and the contracted sales price, less estimated selling costs.

⁽²⁾

Piedmont determined that the carrying value would not be recovered from the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. As a result, Piedmont recognized a loss on impairment of approximately $2.7 million during the year ended December 31, 2016 calculated as the difference between the carrying value of the asset including a proportionate amount of goodwill and the anticipated contract sales price, less estimated selling costs.

⁽³⁾

Piedmont elected to sell its remaining two assets and exit the Rockville, Maryland sub-market of Washington, D.C., after selling the 9221 Corporate Boulevard building in July 2016. Upon management's change in its hold period assumption for the assets from a long-term hold to a near-term sale, Piedmont recognized an impairment loss of approximately $23.0 million. The impairment loss was calculated as the difference between the carrying value of the asset including a proportionate amount of goodwill and the anticipated contracted sales price, less estimated selling costs.


⁽⁴⁾	The impairment loss was calculated as the difference between the carrying value of the asset and the anticipated contracted sales price, less estimated selling costs.

⁽⁵⁾

The fair value measurements used in the evaluation of the non-financial assets above are considered to be Level 1 valuations within the fair value hierarchy as defined by GAAP, as there are direct observations and transactions involving the assets by unrelated, third party purchasers.