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Note 11—Fair Values of Financial Instruments
As of December 31, 2011 and 2010, the carrying amounts and fair values of our financial instruments were as follows:
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2011 |
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2010 |
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Carrying
Amount |
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Fair Value |
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Carrying
Amount |
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Fair Value |
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(In thousands)
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Assets: |
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Cash and cash equivalents |
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$ |
45,807 |
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$ |
45,807 |
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$ |
21,812 |
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$ |
21,812 |
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Secured loans receivable, net |
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212,577 |
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216,315 |
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149,263 |
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155,377 |
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Derivative instruments |
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11 |
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11 |
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99 |
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99 |
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Marketable debt securities |
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43,331 |
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43,331 |
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66,675 |
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66,675 |
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Unsecured loans receivable, net |
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63,598 |
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65,219 |
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— |
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— |
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Liabilities: |
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Senior notes payable and other debt, gross |
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6,180,443 |
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6,637,691 |
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2,926,954 |
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3,055,435 |
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Derivative instruments and other liabilities |
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80,815 |
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80,815 |
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3,722 |
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3,722 |
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Redeemable OP unitholder interests |
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102,837 |
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102,837 |
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— |
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— |
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Fair value estimates are subjective in nature and depend upon several important assumptions, including estimates of future cash flows, risks, discount rates and relevant comparable market information associated with each financial instrument. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented above are not necessarily indicative of the amounts we would realize in a current market exchange.
At December 31, 2011, we held corporate marketable debt securities, classified as available-for-sale and included within other assets on our Consolidated Balance Sheets, having an aggregate amortized cost basis and fair value of $41.2 million and $43.3 million, respectively. At December 31, 2010, our marketable debt securities had an aggregate amortized cost basis and fair value of $61.9 million and $66.7 million, respectively. The contractual maturities of our current marketable debt securities range from October 1, 2012 to April 15, 2016. During 2011, we sold certain marketable debt securities for $23.1 million in proceeds and recognized aggregate gains from these sales of approximately $1.8 million (included in income from loans and investments in our Consolidated Statements of Income). |