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, 2014

Schedule of fair value assets and liabilities measured on recurring basis

The table below sets forth financial assets and liabilities of COPT and its subsidiaries that are accounted for at fair value on a recurring basis as of March 31, 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
Assets:
Marketable securities in deferred compensation plan (1)
Mutual funds	$	7,249	$	—	$	—	$	7,249
Common stocks	115		—		—		115
Other	201		—		—		201
Interest rate derivatives (2)	—		5,038		—		5,038
Warrants to purchase common stock (2)	—		537		—		537
Total Assets	$	7,565	$	5,575	$	—	$	13,140
Liabilities:
Deferred compensation plan liability (3)	$	—	$	7,565	$	—	$	7,565
Interest rate derivatives	—		3,196		—		3,196
Total Liabilities	$	—	$	10,761	$	—	$	10,761
Redeemable noncontrolling interest	$	—	$	—	$	17,654	$	17,654

(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 table below sets forth financial assets and liabilities of COPLP and its subsidiaries that are accounted for at fair value on a recurring basis as of March 31, 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
Assets:
Interest rate derivatives (1)	$	—	$	5,038	$	—	$	5,038
Warrants to purchase common stock (1)	—		537		—		537
Total Assets	$	—	$	5,575	$	—	$	5,575
Liabilities:
Interest rate derivatives	$	—	$	3,196	$	—	$	3,196
Redeemable noncontrolling interest	$	—	$	—	$	17,654	$	17,654

(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 techniques used by us in determining the fair value of the property (dollars in thousands):

Fair Value of Property Held as of March 31, 2013

Impairment Losses

Quoted Prices in

Significant

Recognized in

Active Markets for

Significant Other

Unobservable

Three Months

Identical Assets

Observable Inputs

Inputs

Ended

Description

(Level 1)

(Level 2)

(Level 3)

Total

March 31, 2013

Assets:

Properties, net

—

7,250

1,857

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 March 31, 2013 (dollars in thousands):



Valuation Technique	Fair Value on Measurement Date		Unobservable Input	Range (Weighted Average)
Bids for property indicative of value	$	7,250	Indicative bid	(1)

(1) This fair value measurement was developed as a result of negotiations between us and a purchaser of a property.