| 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):
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December 31, 2017 |
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December 31, 2016 |
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Level 1 |
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Level 2 |
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Level 3 |
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Fair Value |
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Level 1 |
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Level 2 |
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Level 3 |
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Fair Value |
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Assets
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Derivatives
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$ |
— |
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$ |
1,214 |
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$ |
— |
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$ |
1,214 |
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$ |
— |
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$ |
4,086 |
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$ |
— |
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$ |
4,086 |
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Liabilities
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Derivatives
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$ |
— |
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$ |
4,911 |
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$ |
— |
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$ |
4,911 |
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$ |
— |
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$ |
210 |
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$ |
— |
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$ |
210 |
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| 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):
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Year Ended December 31, |
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2017 |
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2016(1) |
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January 1,
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$ |
— |
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$ |
12,561 |
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Proceeds from investment realizations
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— |
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(3,609 |
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Transfers out of level 3(2)
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— |
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(20,745 |
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Adjustments to fair value included in earnings
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Gain on investments at fair value
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— |
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11,793 |
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December 31,
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$ |
— |
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$ |
— |
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(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.
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(2) |
During the second quarter of 2016, $20.7 million of
collateralized debt obligations, or CDOs, were transferred out of
Level 3 and into Level 1 as a result of a binding agreement to sell
the underlying collateral assets of the CDO to an independent
third-party. These investments were realized in the third quarter
of 2016.
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| Schedule of Details of Carrying Amount, Face Amount, and Fair Value of Financial Instruments |
The following table details the carrying amount,
face amount, and fair value of the financial instruments described
in Note 2 ($ in thousands):
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December 31, 2017 |
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December 31, 2016 |
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Carrying
Amount |
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Face
Amount |
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Fair
Value |
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Carrying
Amount |
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Face
Amount |
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Fair
Value |
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Financial assets
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Cash and cash equivalents
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$ |
69,654 |
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$ |
69,654 |
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$ |
69,654 |
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$ |
75,567 |
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$ |
75,567 |
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$ |
75,567 |
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Restricted cash
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32,864 |
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32,864 |
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32,864 |
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— |
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— |
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— |
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Loans receivable, net
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10,056,732 |
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10,108,226 |
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10,112,331 |
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8,692,978 |
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8,727,218 |
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8,733,784 |
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Financial liabilities
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Secured debt agreements, net
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5,273,855 |
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5,290,536 |
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5,290,536 |
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5,716,354 |
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5,731,626 |
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5,731,626 |
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Loan participations sold, net
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80,415 |
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80,706 |
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80,706 |
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348,077 |
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349,633 |
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349,633 |
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Securitized debt obligations, net
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1,282,412 |
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1,292,120 |
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1,292,589 |
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— |
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— |
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— |
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Convertible notes, net
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563,911 |
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575,000 |
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610,201 |
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166,762 |
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172,500 |
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191,763 |
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