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Fair value measurements
 12 Months Ended
Dec. 31, 2013
Fair Value Measurements [Abstract]  
Fair Value Measurements [Text Block]

7.       FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurement and Disclosures 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 on our consolidated balance sheets at December 31, 2013 and 2012 consists solely of marketable securities, which is presented in the table below, based on its level in the fair value hierarchy. There were no financial liabilities measured at fair value at December 31, 2013 and 2012.

   As of December 31, 2013 
  (Amounts in thousands)Total Level 1 Level 2 Level 3 
  Marketable securities$ 31,522 $ 31,522 $ - $ - 
               
   As of December 31, 2012 
  (Amounts in thousands)Total Level 1 Level 2 Level 3 
  Marketable securities$ 31,206 $ 31,206 $ - $ - 

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 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 December 31, 2013 and 2012.

   As of December 31, 2013  As of December 31, 2012
   Carrying  Fair  Carrying  Fair
(Amounts in thousands) Amount  Value  Amount  Value
Assets:           
 Cash equivalents$ 184,796 $ 184,796 $ 289,054 $ 289,054
             
Liabilities:           
 Mortgages payable$ 1,049,959 $ 1,072,000 $ 1,065,916 $ 1,097,000
 Leasing commissions (included in Amounts due to Vornado)  42,924   43,000   45,803   46,000
  $ 1,092,883 $ 1,115,000 $ 1,111,719 $ 1,143,000