Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Assets And Liabilities Measured On Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, aggregated by the level in the fair value hierarchy in which those measurements fall, are as follows (in thousands):



	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at March 31, 2017
Assets:
Investments, mutual funds held in a grantor trust	$	27,484					$	27,484
Investments, mutual funds	8,130						8,130
Derivative instruments:
Interest rate contracts			$	872			872
Total	$	35,614	$	872	$	—	$	36,486
Liabilities:
Deferred compensation plan obligations	$	27,484					$	27,484
Total	$	27,484	$	—	$	—	$	27,484



	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at December 31, 2016
Assets:
Investments, mutual funds held in a grantor trust	$	26,328					$	26,328
Investments, mutual funds	7,670						7,670
Derivative instruments:
Interest rate contracts			$	126			126
Total	$	33,998	$	126	$	—	$	34,124
Liabilities:
Deferred compensation plan obligations	$	26,328					$	26,328
Total	$	26,328	$	—	$	—	$	26,328

Assets Measured on a Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis at March 31, 2017 aggregated by the level in the fair value hierarchy in which those measurements fall, are as follows (in thousands):



	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value		Total Gains (Losses) ⁽¹⁾
Property ⁽²⁾			$	12,901	$	5,896	$	18,797	$	(10,265	)
Property held for sale ⁽³⁾			15,998				15,998		(3,123		)
Investment in real estate joint ventures and partnerships ⁽⁴⁾					961		961		(95		)
Total	$	—	$	28,899	$	6,857	$	35,756	$	(13,483	)

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(1)	Total gains (losses) exclude impairments on disposed assets because they are no longer held by us.

(2)

In accordance with our policy of evaluating and recording impairments on the disposal of long-lived assets, property with a carrying amount of $29.1 million was written down to a fair value of $18.8 million, resulting in a loss of $10.3 million, which was included in earnings for the period. Management’s estimate of fair value of these properties was determined using a bona fide purchase offer for the Level 2 inputs. See the quantitative information about the significant unobservable inputs used for our Level 3 fair value measurements table below.


(3)	Property held for sale with a carrying amount of $19.1 million was written down to a fair value of $16.6 million, less costs to sale of $.6 million, resulting in a loss of $3.1 million, which was included in earnings for the period. Management’s estimate of the fair value of these properties was determined using bona fide purchase offers for the Level 2 inputs.


(4)	Our net investment in real estate joint ventures and partnerships with a carrying amount of $1.1 million was written down to a fair value of $1.0 million, resulting in a loss of $.1 million, which was included in earnings for the period. See the quantitative information about the significant unobservable inputs used for our Level 3 fair value measurements table below.

Schedule Of Fair Value Disclosures

Schedule of our fair value disclosures is as follows (in thousands):



	March 31, 2017						December 31, 2016
	Carrying Value		Fair Value Using Significant Other Observable Inputs (Level 2)		Fair Value Using Significant Unobservable Inputs (Level 3)		Carrying Value		Fair Value Using Significant Other Observable Inputs (Level 2)		Fair Value Using Significant Unobservable Inputs (Level 3)
Other Assets:
Tax increment revenue bonds⁽¹⁾	$	23,910			$	23,910	$	23,910			$	23,910
Investments, held to maturity⁽²⁾	4,241		$	4,241			5,240		$	5,248
Debt:
Fixed-rate debt	2,070,858				2,119,536		2,089,769				2,132,082
Variable-rate debt	252,589				251,321		266,759				265,230

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(1)	At March 31, 2017 and December 31, 2016, the credit loss balance on our tax increment revenue bonds was $31.0 million.


(2)	Investments held to maturity are recorded at cost. As of March 31, 2017, no unrealized gain or loss was recognized on these investments, and at December 31, 2016, an $8 thousand unrealized gain was recognized.

Quantitative Information About Significant Unobservable Inputs (Level 3) Used

The quantitative information about the significant unobservable inputs used for our Level 3 fair value measurements as of March 31, 2017 and December 31, 2016 reported in the above tables, is as follows:



Description	Fair Value at					Unobservable Inputs	Range
	March 31, 2017		December 31, 2016				Minimum					Maximum
	(in thousands)				Valuation Technique		2017			2016		2017			2016
Property	$	5,896	$	—	Discounted cash flows	Discount rate	7.5		%			12.0		%
						Capitalization rate	7.0		%			10.0		%
						Holding period (years)	5					10
						Expected future inflation rate ⁽¹⁾						2.0		%
						Market rent growth rate ⁽¹⁾	2.0		%			3.0		%
						Expense growth rate ⁽¹⁾						2.0		%
						Vacancy rate ⁽¹⁾	—		%			20.0		%
						Renewal rate ⁽¹⁾						70.0		%
						Average market rent rate ⁽¹⁾	$	11.00				$	16.00
						Average leasing cost per square foot ⁽¹⁾	$	10.00				$	35.00
Investment in real estate joint ventures and partnerships	961		—		Bona fide purchase offers	Contract price
Tax increment revenue bonds	23,910		23,910		Discounted cash flows	Discount rate	6.5		%	6.5	%	7.5		%	7.5	%
						Expected future growth rate	1.0		%	1.0	%	2.5		%	2.0	%
						Expected future inflation rate	1.0		%	1.0	%	3.0		%	3.0	%
Fixed-rate debt	2,119,536		2,132,082		Discounted cash flows	Discount rate	3.0		%	3.0	%	5.1		%	5.2	%
Variable-rate debt	251,321		265,230		Discounted cash flows	Discount rate	1.9		%	1.6	%	2.6		%	2.4	%

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(1)	Only applies to one property valuation.