FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Assets and Liabilities Measured on a Recurring Basis

The following table presents the fair value measurement hierarchy levels required under ASC 820 for each of the Company's assets and liabilities that are measured at fair value on a recurring basis:



	December 31, 2018								December 31, 2017
	Fair Value Measurements Using								Fair Value Measurements Using
(In thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	—	$	—	$	—	$	—	$	50,135	$	50,135	$	—	$	—
Interest rate swap derivative assets	346		—		346		—		4,470		—		4,470		—
Liabilities:
Interest rate swap derivative liabilities	16,517		—		16,517		—		5,961		—		5,961		—

Rollforward of Sponsor and Management Warrants

As discussed further in Note 13 - Warrants, as of December 31, 2018, all Sponsor Warrants and Management Warrants had been exercised. The following table presents a rollforward of the valuation of the Company's Warrant liabilities:



(In thousands)	2018		2017			2016
Balance as of January 1,	$	—	$	332,170		$	307,760
Warrant liability loss (gain) (a)	—		43,443			24,410
Exercises of Sponsor and Management Warrants	—		(375,613		)	—
Balance as of December 31,	$	—	$	—		$	332,170


(a)	For 2017, this amount represents losses recognized relating to each warrant prior to the respective exercise date. For 2016, represents unrealized losses recorded for outstanding warrants at the end of the period. Changes in the fair value of the Sponsor Warrants and Management Warrants prior to exercise were recognized in net income as a warrant liability gain or loss.

Summary of assets and liabilities that were measured at fair value on a non-recurring basis

The estimated fair values of HHC's financial instruments that are not measured at fair value on a recurring basis are as follows:



		December 31, 2018				December 31, 2017
(In thousands)	Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and Restricted cash	Level 1	$	724,215	$	724,215	$	914,165	$	914,165
Accounts receivable, net (a)	Level 3	12,589		12,589		13,041		13,041
Notes receivable, net (b)	Level 3	4,694		4,694		5,864		5,864
Liabilities:
Fixed-rate debt (c)	Level 2	1,663,875		1,608,635		1,526,875		1,554,766
Variable-rate debt (c)	Level 2	1,551,336		1,551,336		1,350,914		1,350,914

(a)Accounts receivable, net is shown net of an allowance of $10.7 million and $9.3 million at December 31, 2018 and 2017, respectively.

(b)Notes receivable, net is shown net of an allowance of $0.1 million at December 31, 2018 and 2017.

(c)Excludes related unamortized financing costs.