COPT Defense Properties Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of fair value assets and liabilities measured on recurring basis

The tables below set forth financial assets and liabilities of COPT and its subsidiaries that are accounted for at fair value on a recurring basis as of December 31, 2015 and 2014 and the hierarchy level of inputs used in measuring their respective fair values under applicable accounting standards (in thousands):



Description	Quoted Prices in Active Markets for Identical Assets(Level 1)		Significant Other Observable Inputs(Level 2)		Significant Unobservable Inputs(Level 3)		Total
December 31, 2015:
Assets:
Marketable securities in deferred compensation plan (1)
Mutual funds	$	5,658	$	—	$	—	$	5,658
Other	105		—		—		105
Interest rate derivatives (2)	—		53		—		53
Total assets	$	5,763	$	53	$	—	$	5,816
Liabilities:
Deferred compensation plan liability (3)	$	—	$	5,763	$	—	$	5,763
Interest rate derivatives	—		3,160		—		3,160
Total liabilities	$	—	$	8,923	$	—	$	8,923

December 31, 2014:
Assets:
Marketable securities in deferred compensation plan (1)
Mutual funds	$	5,756	$	—	$	—	$	5,756
Other	126		—		—		126
Interest rate derivatives (2)	—		274		—		274
Total assets	$	5,882	$	274	$	—	$	6,156
Liabilities:
Deferred compensation plan liability (3)	$	—	$	5,882	$	—	$	5,882
Interest rate derivatives	—		1,855		—		1,855
Total liabilities	$	—	$	7,737	$	—	$	7,737

(1) Included in the line entitled “restricted cash and marketable securities” on COPT’s consolidated balance sheet.

(2) Included in the line entitled “prepaid expenses and other assets” on COPT’s consolidated balance sheet.

(3) Included in the line entitled “other liabilities” on COPT’s consolidated balance sheet.

The tables below set forth financial assets and liabilities of COPLP and its subsidiaries that are accounted for at fair value on a recurring basis as of December 31, 2015 and 2014 and the hierarchy level of inputs used in measuring their respective fair values under applicable accounting standards (in thousands):



Description	Quoted Prices in Active Markets for Identical Assets(Level 1)		Significant Other Observable Inputs(Level 2)		Significant Unobservable Inputs(Level 3)		Total
December 31, 2015:
Assets:
Interest rate derivatives (1)	$	—	$	53	$	—	$	53
Total Assets	$	—	$	53	$	—	$	53
Liabilities:
Interest rate derivatives	$	—	$	3,160	$	—	$	3,160

December 31, 2014:
Assets:
Interest rate derivatives (1)	$	—	$	274	$	—	$	274
Total Assets	$	—	$	274	$	—	$	274
Liabilities:
Interest rate derivatives	$	—	$	1,855	$	—	$	1,855

(1) Included in the line entitled “prepaid expenses and other assets” on COPLP’s consolidated balance sheet.

Schedule of fair value hierarchy of impaired properties and other assets associated with such properties

The table below sets forth the fair value hierarchy of the valuation technique we used to determine nonrecurring fair measurements of assets as of December 31, 2015 (dollars in thousands):



	Fair Values as of December 31, 2015
	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Total properties, net (1)	$	—	$	—	$	13,850	$	13,850
Assets held for sale, net (2)	—		—		21,423		21,423

(1) Represents estimated fair values.

(2) Represents estimated fair values less costs to sell.

Schedule of quantitative information about significant unobservable inputs used for Level 3 fair value measurements

The table below sets forth quantitative information about significant unobservable inputs used for the Level 3 fair value measurements reported above as of December 31, 2015 (dollars in thousands):



Valuation Technique	Fair Values on Measurement Date		Unobservable Input	Range (Weighted Average) (1)
Bids for property indicative of value	$	24,423	Indicative bids	N/A
Comparable sales analysis	10,850		Comparable sales prices	N/A

(1) Only one value applied for these unobservable inputs.