Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.6.0.2
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
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, 2016 and 2015 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, 2016:
 
 
 
 
 
 
 
 
Assets:
 
 

 
 

 
 

 
 

Marketable securities in deferred compensation plan (1)
 
 

 
 

 
 

 
 

Mutual funds
 
$
5,346

 
$

 
$

 
$
5,346

Other
 
91

 

 

 
91

Interest rate derivatives (2)
 

 
158

 

 
158

Total assets
 
$
5,437

 
$
158

 
$

 
$
5,595

Liabilities:
 
 

 
 

 
 

 
 

Deferred compensation plan liability (3)
 
$

 
$
5,437

 
$

 
$
5,437

Interest rate derivatives
 

 
1,572

 

 
1,572

Redeemable preferred shares of beneficial interest (4)
 

 
26,583

 

 
26,583

Total liabilities
 
$

 
$
33,592

 
$

 
$
33,592

 
 
 
 
 
 
 
 
 
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


(1) Included in the line entitled “restricted cash and marketable securities” on COPTs consolidated balance sheet.
(2) Included in the line entitled “prepaid expenses and other assets” on COPTs consolidated balance sheet.
(3) Included in the line entitled “other liabilities” on COPTs consolidated balance sheet.
(4) See disclosure regarding our Series K Preferred Shares in Note 13.

COPLP and Subsidiaries

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, 2016 and 2015 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, 2016:
 
 
 
 
 
 
 
 
Assets:
 
 

 
 

 
 

 
 

Interest rate derivatives (1)
 
$

 
$
158

 
$

 
$
158

Liabilities:
 
 

 
 

 
 

 
 

Interest rate derivatives
 
$

 
$
1,572

 
$

 
$
1,572

Redeemable preferred units of general partner (2)
 

 
26,583

 

 
26,583

Total liabilities
 
$

 
$
28,155

 
$

 
$
28,155

 
 
 
 
 
 
 
 
 
December 31, 2015:
 
 
 
 
 
 
 
 
Assets:
 
 

 
 

 
 

 
 

Interest rate derivatives (1)
 
$

 
$
53

 
$

 
$
53

Liabilities:
 
 

 
 

 
 

 
 

Interest rate derivatives
 
$

 
$
3,160

 
$

 
$
3,160


(1) Included in the line entitled “prepaid expenses and other assets” on COPLPs consolidated balance sheet.
(2) See disclosure regarding our Series K Preferred Units in Note 14.

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 value measurements of these assets as of December 31, 2016 (dollars in thousands):
 
 
Fair Values as of December 31, 2016
 
 
 
Quoted Prices in
 
 
 
Significant
 
 
 
 
 
Active Markets for
 
Significant Other
 
Unobservable
 
 
 
 
 
Identical Assets
 
Observable Inputs
 
Inputs
 
 
 
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Assets:
 
 

 
 

 
 

 
 

 
Assets held for sale, net
 
$

 
$

 
$
79,685

 
$
79,685

 
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, 2016 (dollars in thousands):
Valuation Technique
 
Fair Values on 
Measurement Date
 
 Unobservable Input
 
Range (Weighted Average)
Discounted cash flow
 
$
77,203

 
Discount rate
 
9.3% - 11.3% (9.9%)
 
 
 
 
Terminal capitalization rate
 
7.8% - 8.5% (8.1%)
Yield analyses
 
$
2,482

 
Investor yield requirement
 
9.0% (1)

(1) Only one fair value applied for this unobservable input.