Fair Values (Tables)

9 Months Ended

Sep. 30, 2017

Assets and Liabilities Measured at Fair Value on Recurring Basis

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


	September 30, 2017								December 31, 2016
	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets
Derivatives	$	—	$	1,628	$	—	$	1,628	$	—	$	4,086	$	—	$	4,086
Liabilities
Derivatives	$	—	$	7,167	$	—	$	7,167	$	—	$	210	$	—	$	210

Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs

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):


	Nine Months Ended September 30,
	2017		2016⁽¹⁾
January 1,	$	—	$	12,561
Proceeds from investment realizations		—		(2,406	)
Transfers out of level 3⁽²⁾		—		(20,745	)
Adjustments to fair value included in earnings
Gain on investments at fair value		—		11,790

September 30,	$	—	$	1,200

(1)

All assets measured at fair value on a recurring basis using Level 3 inputs were included as a component of other assets in the consolidated Balance Sheets.

(2)

During the second quarter of 2016, $20.7 million of collateralized debt obligations, or CDOs, were transferred out of Level 3 and into Level 1 as a result of a binding agreement to sell the underlying collateral assets of the CDO to an independent third-party. These investments were realized in the third quarter of 2016.

Schedule of Details of Carrying Amount, Face Amount, and Fair Value of Financial Instruments

The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands):


	September 30, 2017						December 31, 2016
	Carrying		Face		Fair		Carrying		Face		Fair
	Amount		Amount		Value		Amount		Amount		Value
Financial assets
Cash and cash equivalents	$	61,221	$	61,221	$	61,221	$	75,567	$	75,567	$	75,567
Restricted cash		32,864		32,864		32,864		—		—		—
Loans receivable, net		9,637,152		9,681,055		9,685,422		8,692,978		8,727,218		8,733,784
Financial liabilities
Secured debt agreements, net		6,079,135		6,096,597		6,096,597		5,716,354		5,731,626		5,731,626
Loan participations sold, net		33,193		33,193		33,193		348,077		349,633		349,633
Securitized debt obligations, net		474,298		474,620		474,655		—		—		—
Convertible notes, net		562,741		575,000		602,503		166,762		172,500		191,763