Fair Value Measurements

9 Months Ended

Sep. 30, 2012

Fair Value [Abstract]

Fair Value Measurements [Text Block]

9.       Fair Value Measurements

Accounting Standards Codification Topic 820, Fair Value Measurement and Disclosures (“ASC 820”) defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value.

Financial Assets and Liabilities Measured at Fair Value

Financial assets measured at fair value in our consolidated financial statements at December 31, 2011consist of short-term investments (investments in Certificate of Deposit Account Registry Services “CDARS”) classified as available-for-sale and are presented in the table below based on their level in the fair value hierarchy.There were no financial assets measured at fair value at September 30, 2012 and there were no financial liabilities measured at fair value at September 30, 2012 and December 31, 2011.

		As of December 31, 2011
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Short-term investments	$	5,000	$	5,000	$	-	$	-

Financial Assets and Liabilities not Measured at Fair Value

Financial liabilities that are not measured at fair value in our consolidated financial statements consist of our mortgages payable. The fair value of our mortgages payable is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist. The fair value of our mortgages payable is classified as Level 2. As of September 30, 2012 and December 31, 2011, the estimated fair value of our mortgages payablewas $1,136,000,000. Our fair value estimates, which are made at the end of the reporting period, may be different from the amounts that may ultimately be realized upon the disposition of our financial instruments. All financial assets, if any, were measured at fair value at September 30, 2012 and December 31, 2011.