Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

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Fair Value Measurements
 9 Months Ended
Sep. 30, 2011
Fair Value Measurements  
Fair Value Measurements

3.                                      Fair Value Measurements

 

For a description on how we estimate fair value, see Note 3 to the consolidated financial statements in our 2010 Annual Report on Form 10-K.

 

The table below sets forth our financial assets and liabilities that are accounted for at fair value on a recurring basis as of September 30, 2011 and the hierarchy level of inputs used in measuring their respective fair values under applicable accounting standards (in thousands):

 

 

 

Quoted Prices in

 

 

 

 

 

 

 

 

 

Active Markets for

 

Significant Other

 

Significant

 

 

 

 

 

Identical Assets

 

Observable Inputs

 

Unobservable Inputs

 

 

 

Description

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Marketable securities in deferred compensation plan (1)

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

5,393

 

$

—

 

$

—

 

$

5,393

 

Common stocks

 

845

 

—

 

—

 

845

 

Preferred stocks

 

314

 

—

 

—

 

314

 

Cash and cash equivalents

 

271

 

—

 

—

 

271

 

Other

 

200

 

—

 

—

 

200

 

Common stock (1)

 

18,450

 

—

 

—

 

18,450

 

Warrants to purchase common shares in KEYW (2)

 

—

 

121

 

—

 

121

 

Assets

 

$

25,473

 

$

121

 

$

—

 

$

25,594

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Deferred compensation plan liability (3)

 

$

7,023

 

$

—

 

$

—

 

$

7,023

 

Interest rate derivatives

 

—

 

30,629

 

—

 

30,629

 

Liabilities

 

$

7,023

 

$

30,629

 

$

—

 

$

37,652

 

 

(1)

Included in the line entitled “restricted cash and marketable securities” on our consolidated balance sheet.

(2)

Included in the line entitled “prepaid expenses and other assets” on our consolidated balance sheet. We own warrants to purchase common shares in The KEYW Holding Corporation (“KEYW”).

(3)

Included in the line entitled “other liabilities” on our consolidated balance sheet.

 

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, other assets (excluding mortgage loans receivable) and accounts payable and accrued expenses are reasonable estimates of their fair values because of the short maturities of these instruments.  Fair value estimates are made at a specific point in time, are subjective in nature and involve uncertainties and matters of significant judgment.  Settlement of such fair value amounts may not be possible and may not be a prudent management decision.

 

For additional fair value information, please refer to Note 7 for mortgage loans receivable, Note 8 for debt and Note 9 for interest rate derivatives.