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):


	March 31, 2016								December 31, 2015
	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets
Derivatives	$	—	$	625	$	—	$	625	$	—	$	8,657	$	—	$	8,657
Other assets⁽¹⁾	$	—	$	1,605	$	10,221	$	11,826	$	—	$	1,659	$	12,561	$	14,220
Liabilities
Derivatives	$	—	$	9,289	$	—	$	9,289	$	—	$	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):


	Three Months Ended March 31,
	2016			2015
January 1,	$	12,561		$	47,507
Proceeds from investment realizations		(2,406	)		(15,038	)
Adjustments to fair value included in earnings
Gain on investments at fair value		66			17,498

March 31,	$	10,221		$	49,967

As of March 31, 2016, we had $10.2 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 transact in 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):


	March 31, 2016						December 31, 2015
	Carrying		Face		Fair		Carrying		Face		Fair
	Amount		Amount		Value		Amount		Amount		Value
Financial assets
Cash and cash equivalents	$	110,622	$	110,622	$	110,622	$	96,450	$	96,450	$	96,450
Restricted cash		434		434		434		9,556		9,556		9,556
Loans receivable, net		9,313,763		9,346,247		9,368,855		9,077,007		9,108,361		9,121,732
Financial liabilities
Secured debt agreements		6,311,659		6,329,385		6,329,385		6,116,105		6,131,751		6,131,751
Loan participations sold		476,894		478,661		478,661		497,032		498,992		498,992
Convertible notes, net		164,696		172,500		179,486		164,026		172,500		171,344

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.