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Estimated Fair Value of Financial Instruments
12 Months Ended
Dec. 31, 2011
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

20. Estimated Fair Value of Financial Instruments

 

Estimated fair values of the Company’s financial instruments as of December 31, 2011 and 2010 were determined using available market information and various valuation estimation methodologies. Considerable judgment was required to interpret the effects on fair value of such items as future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. The estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. Also, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair values.

 

    December 31, 2011 (Amounts in thousands)     December 31, 2010 (Amounts in thousands)  
    Net Carrying Value (1)     Estimated Fair Value     Net Carrying Value (1)     Estimated Fair Value  
                         
Assets                        
Cash and cash equivalents   $ 1,187     $ 1,187     $ 761     $ 761  
Securities available for sale     -       -       2,839       2,839  
Notes receivable held for sale     -       -       2,075       2,151  
Notes receivable     30       38       42       56  
                                 
Liabilities                                
Mortgage debt     14,484       14,558       14,594       20,144  

  

(1) Net carrying value is net of valuation reserves and discounts where applicable.

 

The fair value estimates presented above were based on pertinent information available to management as of December 31, 2011 and 2010.

 

Fair value methods and assumptions were as follows:

 

Cash and Cash Equivalents – The estimated fair value approximated carrying value, due to the short maturity of these investments.

 

Securities Available for Sale – The fair value of securities available for sale was determined to be Level 1 financial assets within the valuation hierarchy established by the ASC Fair Value Measurements and Disclosures Topic, and was based on current market quotes received from financial sources that trade such securities.

 

Notes Receivable – The fair value of notes receivable was estimated by discounting projected cash flows using current rates for similar notes receivable.

 

Mortgage Debt – The fair value of mortgage debt was estimated by discounting projected cash flows using current rates for similar debt.