Under current authoritative accounting guidance for fair value measurements, the fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps and swaps; and Level 3, for which little or no market data exists, therefore requiring us to develop our own assumptions, such as certain securities.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Money Market Funds — Our money market funds consisted of government securities and U.S. Treasury bills. These funds were classified as Level 1 as we used quoted prices from active markets to determine their fair values.

Derivative Assets and Liabilities — Our derivative assets and liabilities primarily comprised of interest rate swaps or caps. These derivative instruments were measured at fair value using readily observable market inputs, such as quotations on interest rates. Our derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

Other Securities — Our other securities primarily comprised of our investment in an India growth fund and our interest in a commercial mortgage loan securitization. These funds are not traded in an active market. We estimated the fair value of these securities using internal valuation models that incorporate market inputs and our own assumptions about future cash flows. We classified these assets as Level 3.

Redeemable Noncontrolling Interest — We account for the noncontrolling interest in WPCI as redeemable noncontrolling interest. We determined the valuation of redeemable noncontrolling interest using widely accepted valuation techniques, including discounted cash flow on the expected cash flows of the investment as well as the income capitalization approach, which considers prevailing market capitalization rates. We classified this liability as Level 3.

The following tables set forth our assets and liabilities that were accounted for at fair value on a recurring basis. Assets and liabilities presented below exclude assets and liabilities owned by unconsolidated ventures (in thousands):


				Fair Value Measurements at June 30, 2011 Using:
				Quoted Prices in
				Active Markets for		Significant Other		Unobservable
				Identical Assets		Observable Inputs		Inputs
Description		Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds		$	35	$	35	$	-	$	-
Other securities			1,601		-		-		1,601
Derivative assets			14		-		14		-
	Total	$	1,650	$	35	$	14	$	1,601

Liabilities:
Derivative liabilities		$	904	$	-	$	904	$	-
Redeemable noncontrolling interest			6,792		-		-		6,792
	Total	$	7,696	$	-	$	904	$	6,792


				Fair Value Measurements at December 31, 2010 Using:
				Quoted Prices in
				Active Markets for		Significant Other		Unobservable
				Identical Assets		Observable Inputs		Inputs
Description		Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds		$	37,154	$	37,154	$	-	$	-
Other securities			1,726		-		-		1,726
Derivative assets			312		-		312		-
	Total	$	39,192	$	37,154	$	312	$	1,726

Liabilities:
Derivative liabilities		$	969	$	-	$	969	$	-
Redeemable noncontrolling interest			7,546		-		-		7,546
	Total	$	8,515	$	-	$	969	$	7,546


			Fair Value Measurements Using
			Significant Unobservable Inputs (Level 3 Only)
			Three Months Ended June 30, 2011				Three Months Ended June 30, 2010
			Assets		Liabilities		Assets		Liabilities
					Redeemable				Redeemable
			Other		Noncontrolling		Other		Noncontrolling
			Securities		Interest		Securities		Interest
Beginning balance			$	1,607	$	6,920	$	1,620	$	15,326
	Total gains or losses (realized and unrealized):
		Included in earnings		(4)		1		-		103
		Included in other comprehensive (loss) income		(2)		2		6		10
	Purchases			-		-		45		-
	Distributions paid			-		(131)		-		(201)
	Redemption value adjustment			-		-		-		(112)
Ending balance			$	1,601	$	6,792	$	1,671	$	15,126

The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date			$	(4)	$	-	$	-	$	-


			Fair Value Measurements Using
			Significant Unobservable Inputs (Level 3 Only)
			Six Months Ended June 30, 2011				Six Months Ended June 30, 2010
			Assets		Liabilities		Assets		Liabilities
					Redeemable				Redeemable
			Other		Noncontrolling		Other		Noncontrolling
			Securities		Interest		Securities		Interest
Beginning balance			$	1,726	$	7,546	$	1,628	$	18,085
	Total gains or losses (realized and unrealized):
		Included in earnings		(2)		604		(1)		338
		Included in other comprehensive (loss) income		(3)		9		(1)		8
	Purchases			53		-		45		-
	Settlements			(173)		-		-		-
	Distributions paid			-		(676)		-		(2,969)
	Redemption value adjustment			-		(691)		-		(336)
Ending balance			$	1,601	$	6,792	$	1,671	$	15,126

The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date			$	(2)	$	-	$	(1)	$	-

We did not have any transfers into or out of Level 1, Level 2 and Level 3 measurements during the three and six months ended June 30, 2011 and 2010. Gains and losses (realized and unrealized) included in earnings for other securities are reported in Other income and (expenses) in the consolidated financial statements.

Our other financial instruments had the following carrying values and fair values as of the dates shown (in thousands):


	At June 30, 2011				At December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
Deferred acquisition fees receivable	$	25,179	$	24,340	$	31,419	$	32,485
Non-recourse debt		342,941		352,956		255,232		255,460
Line of credit		233,160		230,400		141,750		140,600

We determined the estimated fair value of our debt instruments using a discounted cash flow model with rates that take into account the credit of the tenants and interest rate risk. We estimated that our other financial assets and liabilities (excluding net investments in direct financing leases) had fair values that approximated their carrying values at both June 30, 2011 and December 31, 2010.

We perform an assessment, when required, of the value of certain of our real estate investments in accordance with current authoritative accounting guidance. As part of that assessment, we determined the valuation of these assets using widely accepted valuation techniques, including expected discounted cash flows or an income capitalization approach, which considers prevailing market capitalization rates. We reviewed each investment based on the highest and best use of the investment and market participation assumptions. We determined that the significant inputs used to value these investments fall within Level 3. We calculate impairment charges based on market conditions and assumptions that existed at the time of the impairment. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change.

The following table presents information about our other assets that were measured on a fair value basis for the periods presented. All of the impairment charges,were measured using unobservable inputs (Level 3) and were recorded based on market conditions and assumptions that existed at the time (in thousands):


	Three Months Ended June 30, 2011				Three Months Ended June 30, 2010
			Total Impairment				Total Impairment
	Total Fair Value		Charges or Allowance		Total Fair Value		Charges or Allowance
	Measurements		for Credit Losses		Measurements		for Credit Losses
Impairment Charges From Continuing
Operations:
Real estate	$	350	$	41	$	-	$	-

Impairment Charges From Discontinued Operations:
Real estate		-		-		5,390		985
	$	350	$	41	$	5,390	$	985


	Six Months Ended June 30, 2011				Six Months Ended June 30, 2010
			Total Impairment				Total Impairment
	Total Fair Value		Charges or Allowance		Total Fair Value		Charges or Allowance
	Measurements		for Credit Losses		Measurements		for Credit Losses
Impairment Charges From Continuing
Operations:
Real estate	$	350	$	41	$	-	$	-
Equity investments in real estate		1,554		206		-		-
		1,904		247		-		-

Impairment Charges From Discontinued Operations:
Real estate		-		-		6,401		8,137
	$	1,904	$	247	$	6,401	$	8,137