Impairment Charges and Reserves (Tables)

3 Months Ended

Mar. 31, 2018

Impairment Charges and Reserves on Assets or Investments

The Company recorded impairment charges and reserves based on the difference between the carrying value of the assets or investments and the estimated fair market value as follows (in millions):

	Three Months
	Ended March 31,
	2018		2017
Assets marketed for sale^(A)	$	30.4	$	22.0
Reserve of preferred equity interests^(B)		4.0		76.0
Total impairment charges	$	34.4	$	98.0

(A)

The impairments recorded during the three months ended March 31, 2018 primarily were triggered by indicative bids received and changes in market assumptions due to disposition process. The impairments recorded during the three months ended March 31, 2017 primarily were triggered by changes in asset hold-period assumptions and/or expected future cash flows.

(B)	As a result of an aggregate valuation allowance on its preferred equity interests in the BRE DDR Joint Ventures (Note 3).

Impairment Charges Measured at Fair Value on Non-Recurring Basis

The following table presents information about the Company’s impairment charges on both financial and nonfinancial assets that were measured on a fair value basis for the three months ended March 31, 2018. The table also indicates the fair value hierarchy of the valuation techniques used by the Company to determine such fair value (in millions).

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total		Total Losses
March 31, 2018
Long-lived assets held and used	$	—	$	—	$	201.1	$	201.1	$	30.4
Preferred equity interests		—		—		232.0		232.0		4.0

Summary of Significant Unobservable Inputs

The following table presents quantitative information about the significant unobservable inputs used by the Company to determine the fair value of non-recurring items (in millions):

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at				Range
Description	March 31, 2018		Valuation Technique	Unobservable Inputs	2018
Impairment of consolidated assets	$	92.1	Indicative Bid^(A)/ Contracted Price	Indicative Bid^(A)/ Contracted Price	N/A
		109.0	Income Capitalization Approach/ Sales Comparison Approach	Market Capitalization Rate	7.4%
Reserve of preferred equity interests		232.0	Discounted Cash Flow	Discount Rate	8.4%-9.0%
				Terminal Capitalization Rate	7.9%-8.5%
				NOI Growth Rate	1%

(A)

Fair value measurements based upon indicative bids were developed by third-party sources (including offers and comparable sales values), subject to the Company’s corroboration for reasonableness. The Company does not have access to certain unobservable inputs used by these third parties to determine these estimated fair values.