14. FAIR VALUES

Assets and Liabilities Measured at Fair Value

The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands):


	December 31, 2015								December 31, 2014
	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets
Derivatives	$	—	$	8,657	$	—	$	8,657	$	—	$	1,138	$	—	$	1,138
Other assets, at fair value⁽¹⁾	$	—	$	1,659	$	12,561	$	14,220	$	—	$	1,510	$	47,507	$	49,017
Liabilities
Derivatives	$	—	$	1,448	$	—	$	1,448	$	—	$	—	$	—	$	—

(1)	Other assets include loans, securities, equity investments, and other receivables measured at fair value.

The following table reconciles the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands):


	Year Ended December 31,
	2015			2014
January 1,	$	47,507		$	54,461
Proceeds from investment realizations		(57,039	)		(20,231	)
Adjustments to fair value included in earnings
Gain on investments at fair value		22,093			13,277

December 31,	$	12,561		$	47,507

As of December 31, 2015, we had $12.6 million of assets measured using Level 3 inputs, which primarily consist of commercial mortgage backed securities that are valued using market quotes received from financial sources that trade such securities.

Refer to Note 2 for further discussion regarding fair value measurement.

Fair Value of Financial Instruments

As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the statement of financial position, for which it is practicable to estimate that value. The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands):


	December 31, 2015						December 31, 2014
	Carrying Amount		Face Amount		Fair Value		Carrying Amount		Face Amount		Fair Value
Financial assets
Cash and cash equivalents	$	96,450	$	96,450	$	96,450	$	51,810	$	51,810	$	51,810
Restricted cash		9,556		9,556		9,556		11,591		11,591		11,591
Loans receivable, net		9,077,007		9,108,361		9,121,732		4,428,500		4,462,897		4,462,897

Financial liabilities
Secured debt agreements		6,116,105		6,131,751		6,131,751		2,353,279		2,365,336		2,365,336
Loan participations sold		497,032		498,992		498,992		496,080		499,433		499,433
Convertible notes, net		164,026		172,500		171,344		161,455		172,500		181,341

Estimates of fair value for cash, cash equivalents and convertible notes are measured using observable, quoted market prices, or Level 1 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities.