Fair Value Measurements

9 Months Ended

Sep. 30, 2013

Fair Value [Abstract]

Fair Value Measurements [Text Block]

9.       Fair Value Measurements

ASC820, Fair Value Measurement and Disclosuresdefines fair value and establishes a framework for measuring fair value. 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 on our consolidated balance sheets at September 30, 2013 and December 31, 2012,consist solely of marketable securities, whichis presented in the table below, based on its level in the fair value hierarchy.There were no financial liabilities measured at fair value at September 30, 2013and December 31, 2012.

		As of September 30, 2013
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	30,210	$	30,210	$	-	$	-
		As of December 31, 2012
(Amounts in thousands)		Total		Level 1		Level 2		Level 3
	Marketable securities	$	31,206	$	31,206	$	-	$	-

9.       Fair Value Measurements – continued

Financial Assets and Liabilities not Measured at Fair Value

Financial assets and liabilities that are not measured at fair value on our consolidated balance sheets include cash equivalents, mortgages payable and leasing commissions due to Vornado. Cash equivalents are carried at cost, which approximates fair value due to their short-term maturities. 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 leasing commissions due to Vornado are carried at cost plus interest at variable rates, which approximate fair value.The fair value of cash equivalents (primarily U.S. Treasury bills) is classified as Level 1 and the fair value of mortgages payable and leasing commissions due to Vornado is classified as Level 2.The table below summarizes the carrying amounts and fair value of these financial instruments as of September 30, 2013 and December 31, 2012.

		As of September 30, 2013				As of December 31, 2012
		Carrying		Fair		Carrying		Fair
(Amounts in thousands)		Amount		Value		Amount		Value
Assets:
	Cash equivalents	$	298,489	$	298,489	$	289,054	$	289,054
Liabilities:
	Mortgages payable	$	1,054,046	$	1,082,000	$	1,065,916	$	1,097,000
	Leasing commissions (included in Amounts due to Vornado)		43,708		44,000		45,803		46,000
		$	1,097,754	$	1,126,000	$	1,111,719	$	1,143,000