XML 35 R26.htm IDEA: XBRL DOCUMENT v3.21.1
Fair Values
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Values Fair Values
Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes the inputs to be used in valuation techniques to measure fair value:
Level 1:  Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2:    Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3:    Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
Certain of the Company's assets and liabilities are recorded at fair value either on a recurring or non-recurring basis. Assets required to be marked-to-market and reported at fair value every reporting period are classified as being valued on a recurring basis. Assets not required to be recorded at fair value every period may be recorded at fair value if a specific provision or other impairment is recorded within the period to mark the carrying value of the asset to market as of the reporting date. Such assets are classified as being valued on a non-recurring basis.
The following fair value hierarchy table summarizes the Company's assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands):
  Fair Value Using
 TotalQuoted market
prices in
active markets
(Level 1)		Significant other
observable
inputs
(Level 2)		Significant
unobservable
inputs
(Level 3)
As of March 31, 2021    
Recurring basis:
Derivative liabilities(1)
$14,178 $— $14,178 $— 
Available-for-sale securities(1)
24,043 — — 24,043 
Loan receivable held for sale (refer to Note 7)16,086 — — 16,086 
Non-recurring basis:    
Other investments(2)
75,402 — 75,402 — 
As of December 31, 2020    
Recurring basis:    
Derivative liabilities(1)
18,926 — 18,926 — 
Available-for-sale securities(1)
25,274 — — 25,274 
Non-recurring basis:    
Impaired land and development(3)
6,078 — — 6,078 
____________________________________________________________
(1)The fair value of the Company's derivatives are based upon widely accepted valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2. The fair value of the Company's available-for-sale securities are based upon unadjusted third-party broker quotes and are classified as Level 3.
(2)During the three months ended March 31, 2021, the Company identified an observable price change in an equity security held by the Company as evidenced by an orderly private issuance of similar securities by the same issuer and, as such, classified such observable price change as Level 2.
(3)The Company recorded a $1.3 million impairment on a land and development asset with an estimated fair value of $6.1 million. The estimated fair value is based on future cash flows expected to be received.

The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company's consolidated balance sheets for the three months ended March 31, 2021 and 2020 ($ in thousands):
20212020
Beginning balance$25,274 $23,896 
Repayments(200)(459)
Unrealized gains (losses) recorded in other comprehensive income(1,031)203 
Ending balance$24,043 $23,640 
Fair values of financial instruments—The following table presents the carrying value and fair value for the Company's financial instruments ($ in millions):
As of March 31, 2021As of December 31, 2020
Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Net investment in leases(1)
$431 $440 $429 $431 
Loans receivable and other lending investments, net(1)
534 578 732 772 
Cash and cash equivalents(2)
194 194 99 99 
Restricted cash(2)
54 54 52 52 
Loan participations payable, net(1)
— — 43 43 
Debt obligations, net(1)(3)
3,291 3,449 3,287 3,414 
_______________________________________________________________________________
(1)The fair value of the Company's net investment in leases, loans receivable and other lending investments, net, loan participations payable, net and debt obligations, net are classified as Level 3 within the fair value hierarchy.
(2)The Company determined the carrying values of its cash and cash equivalents and restricted cash approximated their fair values. Restricted cash is recorded in "Deferred expenses and other assets, net" on the Company's balance sheet. The fair value of the Company's cash and cash equivalents and restricted cash are classified as Level 1 within the fair value hierarchy.
(3)As of March 31, 2021 and December 31, 2020, the fair value of the Company's 3.125% Senior Convertible Notes was $377.8 million and $338.8 million, respectively.