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Fair Value Measurements
12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value Measurements
FAIR VALUE MEASUREMENTS
ASC 820, Fair Value Measurement and Disclosures defines 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 as of December 31, 2017 and 2016 consist of marketable securities, which are presented in the table below based on their level in the fair value hierarchy, and an interest rate cap, which fair value was insignificant as of December 31, 2017 and 2016. There were no financial liabilities measured at fair value as of December 31, 2017 and 2016.
 
 
As of December 31, 2017
(Amounts in thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Marketable securities
$
35,156

 
$
35,156

 

 

 
 
 
 
 
 
 
 
 
As of December 31, 2016
(Amounts in thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Marketable securities
$
37,918

 
$
37,918

 

 


 
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, the Rego Park II loan participation and mortgages payable.  Cash equivalents are carried at cost, which approximates fair value due to their short-term maturities and are classified as Level 1.  The fair values of the Rego Park II loan participation and our mortgages payable are 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, and are classified as Level 2.  The table below summarizes the carrying amount and fair value of these financial instruments as of December 31, 2017 and 2016.
 
 
As of December 31, 2017
 
As of December 31, 2016
 
Carrying
 
Fair
 
Carrying
 
Fair
(Amounts in thousands)
Amount
 
Value
 
Amount
 
Value
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
273,914

 
$
273,914

 
$
256,370

 
$
256,370

Rego Park II loan participation
198,537

 
198,000

 

 

 
472,451

 
471,914

 
256,370

 
256,370

Liabilities:
 
 
 
 
 
 
 
Mortgages payable (excluding deferred debt issuance costs, net)
$
1,252,440

 
$
1,239,000

 
$
1,056,147

 
$
1,045,000