COPT Defense Properties Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2012

Schedule of fair value assets and liabilities measured on recurring basis

	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	$	6,121	$	—	$	—	$	6,121
Common stocks	414		—		—		414
Other	238		—		—		238
Common stock (1)	454		—		—		454
Warrants to purchase common shares in KEYW (2)	—		133		—		133
Assets	$	7,227	$	133	$	—	$	7,360

Liabilities:
Deferred compensation plan liability (3)	$	6,773	$	—	$	—	$	6,773
Interest rate derivatives	—		2,673		—		2,673
Liabilities	$	6,773	$	2,673	$	—	$	9,446

(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.

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

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

Quoted Prices in

Active Markets for

Significant Other

Significant

Impairment

Identical Assets

Observable Inputs

Unobservable Inputs

Losses

Description

(Level 1)

(Level 2)

(Level 3)

Total

Recognized

Assets (1):

Properties, net

—

92,176

5,479

(1) Reflects balance sheet classifications of assets at time of fair value measurement, excluding the effect of held for sale classifications.

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

	Fair value				Range
	on measurement		Valuation	Unobservable	(Weighted
Description	date		Technique	Input	Average)
Properties on which impairment losses were recognized	$	92,176	Bid for properties indicative of value	Indicative bid (1)	(1)
			Contract of sale	Contract price (1)	(1)
			Discounted cash flow	Discount rate	11.0% (2)
				Terminal capitalization rate	9.0% (2)
				Market rent growth rate	3.0% (2)
				Expense growth rate	3.0% (2)
			Yield Analysis	Yield	12% (2)
				Market rent rate	8.5 (2)
				Leasing costs	$20.00 per square foot (2)

(1) These fair value measurements were developed from third party sources, subject to our corroboration for reasonableness.

(2) Only one level applied to this unobservable input.

- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References + Details