Fair Value Measurements
 9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
The Company’s assets and liabilities that are required to be measured at fair value in the accompanying condensed consolidated financial statements are summarized below.
The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 (in thousands):
 
 
 
Fair Value Hierarchy Level
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
September 30, 2013:
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
Interest rate swaps financial liabilities
$
(1,070
)
 
$
—

 
$
(1,070
)
 
$
—

Interest rate swap financial asset
61

 
—

 
61

 
—

December 31, 2012:
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
Interest rate swaps financial liabilities
$
(771
)
 
$
—

 
$
(771
)
 
$
—


The interest rate swaps are measured using a market approach, using prices obtained from a nationally recognized pricing service and pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 of the fair value hierarchy.
The following table sets forth the Company’s assets that were accounted for at fair value on a nonrecurring basis as of September 30, 2013 and December 31, 2012 (in thousands):
 
 
 
 
 
Fair Value Hierarchy Level
 
Impairment
Charges
Description
Fair Value
 
Dispositions
 
Level 1
 
Level 2
 
Level 3
 
September 30, 2013:
 
 
 
 
 
 
 
 
 
 
 
Long-lived assets held and used
$
8,134

 
$
—

 
$
—

 
$
—

 
$
8,134

 
$
(1,481
)
Lease intangible assets
—

 
—

 
—

 
—

 
—

 
(487
)
Long-lived assets held for sale
33,404

 
(1,157
)
 
—

 
—

 
34,561

 
(4,066
)
 
 
 
 
 
 
 
 
 
 
 
$
(6,034
)
December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
Long-lived assets held and used
$
27,449

 
$
(425
)
 
$
—

 
$
—

 
$
27,874

 
$
(7,404
)
Lease intangible assets
—

 
—

 
—

 
—

 
—

 
(2,680
)
Long-lived assets held for sale
4,184

 
(7,983
)
 
—

 
—

 
12,167

 
(3,648
)
 
 
 
 
 
 
 
 
 
 
 
$
(13,732
)

The fair values of impaired real estate and intangible assets were determined by using the following information, depending on availability, in order of preference: signed purchase and sale agreements or letters of intent; recently quoted bid or ask prices, or market prices for comparable properties; estimates of cash flow, which consider, among other things, contractual and forecasted rental revenues, leasing assumptions, and expenses based upon market conditions; and expectations for the use of the real estate. Based on these inputs, the Company determined that its valuation of the impaired real estate and intangible assets falls within Level 3 of the fair value hierarchy.
In addition to the disclosures for assets and liabilities required to be measured at fair value at the balance sheet date, companies are required to disclose the estimated fair values of all financial instruments, even if they are not carried at their fair values. The fair values of financial instruments are estimates based upon market conditions and perceived risks at September 30, 2013 and December 31, 2012. These estimates require management’s judgment and may not be indicative of the future fair values of the assets and liabilities.
Financial assets and liabilities for which the carrying values approximate their fair values include cash and cash equivalents, restricted cash and escrow deposits, and accounts receivable and payable. Generally, these assets and liabilities are short-term in duration and are recorded at fair value on the accompanying condensed consolidated balance sheets.
The estimated fair values of the fixed-rate mortgage and other loans receivable, revolving credit facilities and the fixed-rate mortgages and notes payable have been derived based on market quotes for comparable instruments or discounted cash flow analyses using estimates of the amount and timing of future cash flows, market rates and credit spreads. The mortgage and other loans receivable, revolving credit facilities and the mortgages and notes payable were measured using a market approach from nationally recognized financial institutions with market observable inputs such as interest rates and credit analytics. These measurements are classified as Level 2 of the fair value hierarchy. The following table discloses fair value information for these financial instruments (in thousands): 
 
September 30, 2013
 
December 31, 2012
 
Carrying
Value
 
Estimated
Fair Value
 
Carrying
Value
 
Estimated
Fair Value
Loans receivable, net
$
119,009

 
$
126,262

 
$
51,862

 
$
69,926

Revolving credit facilities
151,508

 
148,910

 
—

 
—

Mortgages and notes payable
3,454,935

 
3,648,134

 
1,894,878

 
2,112,670