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Fair Value Measurements | 9 Months Ended
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Sep. 30, 2020
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note 11—Fair Value Measurements The carrying amounts of restricted cash, certain components of other assets, accounts payable and accrued expenses, resident security deposits, and certain components of other liabilities approximate fair value due to the short maturity of these amounts. Our interest rate swap agreements and interest rate cap agreements are the only financial instruments recorded at fair value on a recurring basis within our condensed consolidated financial statements. The fair values of our interest rate caps and swaps, which are classified as Level 2 in the fair value hierarchy, are estimated using market values of instruments with similar attributes and maturities. See Note 7 for the details of the condensed consolidated balance sheet classification and the fair values for the interest rate caps and swaps. Recurring Fair Value Measurements The following table displays the carrying values and fair values of financial instruments as of September 30, 2020 and December 31, 2019:
|  |  |  | September 30, 2020 |  | December 31, 2019
|  |  |  | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Assets carried at historical cost on the condensed consolidated balance sheets: |  |  |  |  |  |  |  |  |  |
Investments in debt securities(1) |  | Level 2 |  | $ | 309,122 |  |  | $ | 312,661 |  |  | $ | 316,991 |  |  | $ | 318,299 |
Liabilities carried at historical cost on the condensed consolidated balance sheets: |  |  |  |  |  |  |  |  |  |
Mortgage loans(2) |  | Level 2 |  | $ | 6,108,880 |  |  | $ | 6,181,214 |  |  | $ | 6,266,407 |  |  | $ | 6,292,261 |
Secured Term Loan(3) |  | Level 3 |  | 403,363 |  |  | 461,617 |  |  | 403,464 |  |  | 411,213 |
Term Loan Facility(4) |  | Level 3 |  | 1,500,000 |  |  | 1,499,446 |  |  | 1,500,000 |  |  | 1,500,444 |
Convertible Senior Notes(5) |  | Level 3 |  | 338,112 |  |  | 352,103 |  |  | 334,299 |  |  | 346,489 |
(1)The carrying values of investments in debt securities are shown net of discount. (2)The carrying values of the mortgage loans are shown net of discount and exclude $13,900 and $27,946 of deferred financing costs as of September 30, 2020 and December 31, 2019, respectively. (3)The carrying value of the Secured Term Loan excludes $2,323 and $2,486 of deferred financing costs as of September 30, 2020 and December 31, 2019, respectively. (4)The carrying value of the Term Loan Facility excludes $4,087 and $6,253 of deferred financing costs as of September 30, 2020 and December 31, 2019, respectively. (5)The carrying values of the Convertible Senior Notes include unamortized discounts of $6,888 and $10,701 as of September 30, 2020 and December 31, 2019, respectively. The fair values of our investment in debt securities and mortgage loans, which are classified as Level 2 in the fair value hierarchy, are estimated based on market bid prices of comparable instruments at the end of the period. The following table displays the significant unobserverable inputs used to develop our Level 3 fair value measurements as of September 30, 2020:
|  | Quantitative Information about Level 3 Fair Value Measurement(1)
|  | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Rate
Secured Term Loan |  | $ | 461,617 |  |  | Discounted Cash Flow |  | Effective Rate |  | 2.08%
Term Loan Facility |  | 1,499,446 |  |  | Discounted Cash Flow |  | Effective Rate |  | 1.88 | % | — | 1.91%
Convertible Senior Notes |  | 352,103 |  |  | Discounted Cash Flow |  | Effective Rate |  | 1.88%
(1)Our Level 3 fair value instruments require interest only monthly payments. Nonrecurring Fair Value Measurements Our assets measured at fair value on a nonrecurring basis are those assets for which we have recorded impairments. Single-Family Residential Properties The single-family residential properties for which we have recorded impairments, measured at fair value on a nonrecurring basis, are summarized below:
|  | For the Three Months Ended September 30, |  | For the Nine Months Ended September 30, |  |
|  | 2020 |  | 2019 |  | 2020 |  | 2019 |  |
Investments in single-family residential properties, net held for use (Level 3): |  |  |  |  |  |  |  |  |  |
Pre-impairment amount |  | $ | — |  |  | $ | 885 |  |  | $ | 451 |  |  | $ | 8,438 |  |  |
Total impairments |  | — |  |  | (254) |  |  | (89) |  |  | (2,072) |  |  |
Fair value |  | $ | — |  |  | $ | 631 |  |  | $ | 362 |  |  | $ | 6,366 |  |  |
|  | For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
|  | 2020 |  | 2019 |  | 2020 |  | 2019 |  |
Investments in single-family residential properties, net held for sale (Level 3): |  |  |  |  |  |  |  |  |  |
Pre-impairment amount |  | $ | 1,800 |  |  | $ | 18,723 |  |  | $ | 19,594 |  |  | $ | 49,837 |  |  |
Total impairments |  | (289) |  |  | (3,706) |  |  | (4,113) |  |  | (9,217) |  |  |
Fair value |  | $ | 1,511 |  |  | $ | 15,017 |  |  | $ | 15,481 |  |  | $ | 40,620 |  |  |
For additional information related to our single-family residential properties as of September 30, 2020 and December 31, 2019, refer to Note 3. ROU Lease Assets During the three months ended September 30, 2020, we relocated one of our corporate offices and vacated the former location. As of September 30, 2020, the expected undiscounted sublease payments through the remaining original lease term of the vacated office space no longer exceed the carrying value of the related ROU lease asset, and we concluded that the ROU lease asset was not fully recoverable. During the three and nine months ended September 30, 2020, we recorded impairment of $1,750 in other, net in the condensed consolidated statements of operations. The fair value of the ROU lease asset measured at fair value on a nonrecurring basis, which is classified as Level 3 in the fair value hierarchy, was determined based on a discounted cash flow analysis reflective of the income expected from a sublease. For additional information related to our ROU lease assets as of September 30, 2020 and December 31, 2019, refer to Note 5.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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