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SEC Filings

10-Q
FOREST CITY REALTY TRUST, INC. filed this Form 10-Q on 10/30/2018
Entire Document
 
Forest City Realty Trust, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)


H. Fair Value Measurements
Fair Value Measurements on a Recurring Basis
The Company’s financial assets consist of interest rate swaps and TROR with positive fair values included in other assets. The Company’s financial liabilities consist of interest rate swaps and TROR with negative fair values included in accounts payable, accrued expenses and other liabilities and borrowings subject to TROR included in nonrecourse mortgage debt and notes payable, net.
The following table summarizes information about financial assets and liabilities measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value:
 
September 30, 2018
 
Level 1
Level 2
Level 3
Total
 
(in thousands)
Interest rate swaps (assets)
$

$
2,046

$

$
2,046

TROR (assets)


3,188

3,188

TROR (liabilities)


(12,020
)
(12,020
)
Fair value adjustment to the borrowings subject to TROR


2,722

2,722

Total
$

$
2,046

$
(6,110
)
$
(4,064
)
 
 
 
 
 
 
December 31, 2017
 
(in thousands)
Interest rate swaps (assets)
$

$
1,129

$

$
1,129

Interest rate swaps (liabilities)

(863
)

(863
)
TROR (assets)


7,969

7,969

TROR (liabilities)


(11,982
)
(11,982
)
Fair value adjustment to the borrowings subject to TROR


(3,210
)
(3,210
)
Total
$

$
266

$
(7,223
)
$
(6,957
)
The following table presents a reconciliation of financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
 
 
Net
TROR
Fair value
adjustment
to the borrowings
subject to TROR
Total
 
(in thousands)
Nine Months Ended September 30, 2018
 
 
 
 
Balance, January 1, 2018
 
$
(4,013
)
$
(3,210
)
$
(7,223
)
Total realized and unrealized gains (losses):
 
 
 
 
Included in earnings
 
 
 
 
Fair market value adjustment
 
(2,799
)
5,029

2,230

Settlement of TROR designated as fair value hedge
 
(903
)
903


Settlement of TROR not designated as a fair value hedge
 
(1,117
)

(1,117
)
Balance, September 30, 2018
 
$
(8,832
)
$
2,722

$
(6,110
)
Nine Months Ended September 30, 2017
 
 
 
 
Balance, January 1, 2017
 
$
(15,573
)
$
7,434

$
(8,139
)
Total realized and unrealized gains (losses):
 
 
 
 
Included in earnings
 
 
 
 
Fair market value adjustment
 
10,733

(9,367
)
1,366

Balance, September 30, 2017
 
$
(4,840
)
$
(1,933
)
$
(6,773
)

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