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Fair Value of Assets and Liabilities
 6 Months Ended
Jun. 30, 2011
Fair Value of Assets and Liabilities  
Fair Value of Assets and Liabilities

Note 9.  Fair Value of Assets and Liabilities

 

The table below presents the fair value of certain of our assets and liabilities at June 30, 2011 categorized by the level of inputs used in the valuation of each asset or liability.

 

Description

 

Total

 

Quoted Prices in Active
Markets for Identical
Assets
(Level 1)

 

Significant Other
Observable Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

 

 

 

 

 

 

 

 

Investments in available for sale securities (1) 

 

$

31,065

 

$

31,065

 

$

—

 

$

—

 

Unsecured senior notes (2)

 

$

702,821

 

$

—

 

$

702,821

 

$

—

 

 

(1) Our investments in available for sale securities include our 250,000 common shares of CWH and 4,235,000 common shares of Five Star. The fair values of these shares are based on quoted prices at June 30, 2011 in active markets (Level 1 inputs).

 

(2) We estimate the fair values of our unsecured senior notes using an average of the bid and ask price of our three issuances of senior notes (Level 1 inputs) on or about June 30, 2011.  The fair values of these senior note obligations exceed their book values of $670,630 by $32,191 because these notes were trading at a premium to their face amounts.

 

In addition to the assets and liabilities described in the above table, our additional financial instruments include rents receivable, cash and cash equivalents, restricted cash, loan receivable, secured and unsecured debt and other liabilities. The fair values of these additional financial instruments approximate their carrying values at June 30, 2011 based upon their liquidity, short term maturity, variable rate pricing or our estimate of fair value using discounted cash flow analyses and prevailing interest rates.