| 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, 2013 and 2012 and the hierarchy level of inputs used in measuring their respective fair values under applicable accounting standards (in thousands):
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|
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, 2013: |
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|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities in deferred compensation plan (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Mutual funds |
|
$ |
7,090 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,090 |
|
Common stocks |
|
176 |
|
|
— |
|
|
— |
|
|
176 |
|
Other |
|
201 |
|
|
— |
|
|
— |
|
|
201 |
|
Common stock (1) |
|
298 |
|
|
— |
|
|
— |
|
|
298 |
|
Interest rate derivatives (2) |
|
— |
|
|
6,594 |
|
|
— |
|
|
6,594 |
|
Warrants to purchase common stock in KEYW (2) |
|
— |
|
|
301 |
|
|
— |
|
|
301 |
|
Total Assets |
|
$ |
7,765 |
|
|
$ |
6,895 |
|
|
$ |
— |
|
|
$ |
14,660 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred compensation plan liability (3) |
|
$ |
— |
|
|
$ |
7,467 |
|
|
$ |
— |
|
|
$ |
7,467 |
|
Interest rate derivatives |
|
— |
|
|
3,309 |
|
|
— |
|
|
3,309 |
|
Total Liabilities |
|
$ |
— |
|
|
$ |
10,776 |
|
|
$ |
— |
|
|
$ |
10,776 |
|
Redeemable noncontrolling interest |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
17,758 |
|
|
$ |
17,758 |
|
|
|
|
|
|
|
|
|
|
December 31, 2012: |
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|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities in deferred compensation plan (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Mutual funds |
|
$ |
6,275 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,275 |
|
Common stocks |
|
298 |
|
|
— |
|
|
— |
|
|
298 |
|
Other |
|
203 |
|
|
— |
|
|
— |
|
|
203 |
|
Common stock (1) |
|
809 |
|
|
— |
|
|
— |
|
|
809 |
|
Warrants to purchase common stock in KEYW (2) |
|
— |
|
|
294 |
|
|
— |
|
|
294 |
|
Total Assets |
|
$ |
7,585 |
|
|
$ |
294 |
|
|
$ |
— |
|
|
$ |
7,879 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred compensation plan liability (3) |
|
$ |
— |
|
|
$ |
6,776 |
|
|
$ |
— |
|
|
$ |
6,776 |
|
Interest rate derivatives |
|
— |
|
|
6,185 |
|
|
— |
|
|
6,185 |
|
Total Liabilities |
|
$ |
— |
|
|
$ |
12,961 |
|
|
$ |
— |
|
|
$ |
12,961 |
|
Redeemable noncontrolling interest |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
10,298 |
|
|
$ |
10,298 |
|
(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, 2013 and 2012 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, 2013: |
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (1) |
|
$ |
298 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
298 |
|
Interest rate derivatives (2) |
|
— |
|
|
6,594 |
|
|
— |
|
|
6,594 |
|
Warrants to purchase common stock in KEYW (2) |
|
— |
|
|
301 |
|
|
— |
|
|
301 |
|
Total Assets |
|
$ |
298 |
|
|
$ |
6,895 |
|
|
$ |
— |
|
|
$ |
7,193 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate derivatives |
|
$ |
— |
|
|
$ |
3,309 |
|
|
$ |
— |
|
|
$ |
3,309 |
|
Redeemable noncontrolling interest |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
17,758 |
|
|
$ |
17,758 |
|
|
|
|
|
|
|
|
|
|
December 31, 2012: |
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock (1) |
|
$ |
809 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
809 |
|
Warrants to purchase common stock in KEYW (2) |
|
— |
|
|
294 |
|
|
— |
|
|
294 |
|
Total Assets |
|
$ |
809 |
|
|
$ |
294 |
|
|
$ |
— |
|
|
$ |
1,103 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate derivatives |
|
$ |
— |
|
|
$ |
6,185 |
|
|
$ |
— |
|
|
$ |
6,185 |
|
Redeemable noncontrolling interest |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
10,298 |
|
|
$ |
10,298 |
|
(1) Included in the line entitled “restricted cash and marketable securities” on COPLP’s consolidated balance sheet.
(2) Included in the line entitled “prepaid expenses and other assets” on COPLP’s consolidated balance sheet.
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| 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 techniques used by us in determining the fair values of the properties (dollars in thousands):
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|
Fair Value of Properties Held as of December 31, 2013 |
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|
Quoted Prices in |
|
|
|
Significant |
|
|
|
Impairment |
|
|
Active Markets for |
|
Significant Other |
|
Unobservable |
|
|
|
Losses |
|
|
Identical Assets |
|
Observable Inputs |
|
Inputs |
|
|
|
Recognized in |
Description |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
|
Total |
|
2013 (1) |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Properties, net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,459 |
|
|
$ |
4,459 |
|
|
$ |
31,068 |
|
(1) Represents aggregate impairment losses on non recurring fair value measurements resulting in impairment losses, excluding exit costs incurred of $979,000.
The table below sets forth the fair value hierarchy of the valuation techniques used by us in determining the fair values of the properties (dollars in thousands):
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|
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|
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|
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|
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|
Fair Value of Properties Held as of December 31, 2012 |
|
|
|
|
Quoted Prices in |
|
|
|
Significant |
|
|
|
Impairment |
|
|
Active Markets for |
|
Significant Other |
|
Unobservable |
|
|
|
Losses |
|
|
Identical Assets |
|
Observable Inputs |
|
Inputs |
|
|
|
Recognized in |
Description |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
|
Total |
|
2012 (1) |
Assets (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties, net |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
173,949 |
|
|
$ |
173,949 |
|
|
$ |
62,702 |
|
(1) Represents aggregate impairment losses on non recurring fair value measurements resulting in impairment losses, excluding exit costs incurred of $4.2 million.
(2) 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 |
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, 2012 (dollars in thousands):
|
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|
|
|
|
|
|
|
|
Valuation Technique |
|
Fair Value on
Measurement Date
|
|
Unobservable Input |
|
Range (Weighted Average) |
Discounted cash flow |
|
$ |
166,650 |
|
|
Discount rate |
|
10.0% to 11.0% (10.3%) |
|
|
|
|
|
Terminal capitalization rate |
|
8.7% to 10.0% (8.9%) |
|
|
|
|
|
Market rent growth rate |
|
3.0% (1) |
|
|
|
|
|
Expense growth rate |
|
3.0% (1) |
Yield Analysis |
|
$ |
2,356 |
|
|
Yield |
|
12% (1) |
|
|
|
|
|
Market rent rate |
|
$8.50 per square foot (1) |
|
|
|
|
|
Leasing costs |
|
$20.00 per square foot (1) |
(1) Only one value applied for this unobservable input.
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, 2013 (dollars in thousands):
|
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|
|
|
|
|
|
|
|
Valuation Technique |
|
Fair Value on
Measurement Date
|
|
Unobservable Input |
|
Range (Weighted Average) |
Discounted cash flow |
|
$ |
4,459 |
|
|
Discount rate |
|
10.0% (1) |
|
|
|
|
Terminal capitalization rate |
|
9.5% (1) |
|
|
|
|
Market rent growth rate |
|
3.0% (1) |
|
|
|
|
Expense growth rate |
|
3.0% (1) |
(1) Only one value applied for this unobservable input.
|