5.	Fair Value Measurements

The “Fair Value Measurements and Disclosures” topic (Topic 820) of the FASB Accounting Standards Codification (ASC) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

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Level 1—Quoted prices in active markets for identical assets or liabilities.

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Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

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Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

There were no significant transfers in or out of Level 1 and Level 2 during the three and nine months ended September 30, 2016 and 2015. There have been no significant changes to the valuation techniques and inputs used to develop the recurring fair value measurements from those disclosed in our 2015 Annual Report.

The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 (dollars in thousands):


	As of September 30, 2016
	Fair Value Measured and Recorded Using
	Level 1		Level 2		Level 3		Total
Assets
Available for sale securities:
Debt securities:
U.S. treasury securities	$	8,381	$	—	$	—	$	8,381
Debt securities issued by U.S. federal agencies		—		5,409		—		5,409
Corporate debt securities		—		17,191		—		17,191
Asset-backed securities		—		2,900		—		2,900
Collateralized mortgage obligations		—		1,044		—		1,044

Total debt securities		8,381		26,544		—		34,925
Equity securities		23,265		—		—		23,265

Total available for sale securities		31,646		26,544		—		58,190
Trading securities		66,707		—		—		66,707
Warehouse receivables		—		1,642,394		—		1,642,394
Foreign currency exchange forward contracts		—		9,427		—		9,427

Total assets at fair value	$	98,353	$	1,678,365	$	—	$	1,776,718

Liabilities
Interest rate swaps	$	—	$	18,873	$	—	$	18,873
Securities sold, not yet purchased		3,123		—		—		3,123
Foreign currency exchange forward contracts		—		4,841		—		4,841

Total liabilities at fair value	$	3,123	$	23,714	$	—	$	26,837


	As of December 31, 2015
	Fair Value Measured and Recorded Using
	Level 1		Level 2		Level 3		Total
Assets
Available for sale securities:
Debt securities:
U.S. treasury securities	$	7,350	$	—	$	—	$	7,350
Debt securities issued by U.S. federal agencies		—		3,360		—		3,360
Corporate debt securities		—		18,085		—		18,085
Asset-backed securities		—		1,897		—		1,897
Collateralized mortgage obligations		—		1,752		—		1,752

Total debt securities		7,350		25,094		—		32,444
Equity securities		24,118		—		—		24,118

Total available for sale securities		31,468		25,094		—		56,562
Trading securities		64,124		—		—		64,124
Warehouse receivables		—		1,767,107		—		1,767,107
Loan commitments		—		—		1,680		1,680
Foreign currency exchange forward contracts		—		9,236		—		9,236

Total assets at fair value	$	95,592	$	1,801,437	$	1,680	$	1,898,709

Liabilities
Interest rate swaps	$	—	$	21,502	$	—	$	21,502
Securities sold, not yet purchased		4,436		—		—		4,436
Foreign currency exchange forward contracts		—		1,008		—		1,008

Total liabilities at fair value	$	4,436	$	22,510	$	—	$	26,946

The following table provides additional information about fair value measurements for the Level 3 assets for the nine months ended September 30, 2016 (dollars in thousands):


Balance, December 31, 2015	$	1,680
Net gains included in earnings		—
Settlements		(1,680	)
Transfers into (out of) Level 3		—

Balance, September 30, 2016	$	—

There were no significant non-recurring fair value measurements recorded during the three and nine months ended September 30, 2016 and 2015.

FASB ASC Topic 825, “Financial Instruments” requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments are as follows:

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Cash and Cash Equivalents and Restricted Cash—These balances include cash and cash equivalents as well as restricted cash with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments.

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Receivables, less Allowance for Doubtful Accounts—Due to their short-term nature, fair value approximates carrying value.

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Warehouse Receivables—These balances are carried at fair value based on market prices at the balance sheet date.

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Trading and Available for Sale Securities—These investments are carried at their fair value.

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Foreign Currency Exchange Forward Contracts—These assets and liabilities are carried at their fair value as calculated by using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative.

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Securities Sold, not yet Purchased—These liabilities are carried at their fair value.

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Short-Term Borrowings—The majority of this balance represents outstanding amounts under our warehouse lines of credit of our wholly-owned subsidiary, CBRE Capital Markets, Inc. (CBRE Capital Markets), and our revolving credit facility. Due to the short-term nature and variable interest rates of these instruments, fair value approximates carrying value (see Note 7).

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Senior Term Loans—Based upon information from third-party banks (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our senior term loans was approximately $855.8 million and $878.6 million at September 30, 2016 and December 31, 2015, respectively. Their actual carrying value, net of unamortized debt issuance costs, totaled $856.7 million and $877.9 million at September 30, 2016 and December 31, 2015, respectively (see Note 7).

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Interest Rate Swaps—These liabilities are carried at their fair value as calculated by using widely-accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative.

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Senior Notes—Based on dealers’ quotes (which falls within Level 2 of the fair value hierarchy), the estimated fair values of our 5.00% senior notes, 4.875% senior notes and 5.25% senior notes were $853.5 million, $638.0 million and $458.1 million, respectively, at September 30, 2016 and $802.6 million, $598.8 million and $430.4 million, respectively, at December 31, 2015. The actual carrying value of our 5.00% senior notes, 4.875% senior notes and 5.25% senior notes, net of unamortized debt issuance costs as well as unamortized discount or premium, if applicable, totaled $790.1 million, $591.0 million and $422.1 million, respectively, at September 30, 2016 and $789.1 million, $590.5 million and $422.0 million, respectively, at December 31, 2015.