XML 59 R26.htm IDEA: XBRL DOCUMENT v3.7.0.1
Fair Value Disclosures (Tables)
 3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
The following table summarizes assets measured at fair value on a recurring basis within the fair value hierarchy as of March 31, 2017:
 
As of March 31, 2017
 
Level I

Level II

Level III

Total








 
(dollars in thousands)
Investments of Och-Ziff, Excluding the Investments of Consolidated Och-Ziff Funds
 
 
 
 
United States government obligations included within cash and cash equivalents
$
19,977

 
$
—

 
$
—

 
$
19,977

Investments in CLO included within other assets, net (1) (2)
—

 
—

 
22,048

 
22,048

 
$
19,977

 
$
—

 
$
22,048

 
$
42,025

 
 
 
 
 
 
 
 
Investments of Consolidated Och-Ziff Funds
 
 
 
 
 
 
 
Bank debt
$
—

 
$
19,333

 
$
16,663

 
$
35,996

_______________
(1) As of March 31, 2017, investments in CLO had contractual principal amounts of $21.6 million outstanding.
(2) The Company elected to measure its investments in CLO at fair value through consolidated net income (loss) in order to simplify its accounting for these instruments. Changes in fair value of these investments are included within net gains on investments in Och-Ziff funds and joint ventures in the consolidated statements of comprehensive income (loss). The Company accrues interest income on its investments in CLO using the effective interest method.
The following table summarizes assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy as of December 31, 2016:
 
As of December 31, 2016
 
Level I
 
Level II
 
Level III
 
Total
 
 
 
 
 
 
 
 
 
(dollars in thousands)
Investments of Och-Ziff, Excluding the Consolidated Funds
 
 
 
 
 
 
 
United States government obligations included within cash and cash equivalents
$
139,974

 
$
—

 
$
—

 
$
139,974

Investments in CLO included within other assets, net (1) (2)
—

 
—

 
21,341

 
21,341

 
$
139,974

 
$
—

 
$
21,341

 
$
161,315

 
 
 
 
 
 
 
 
Investments of Consolidated Och-Ziff Funds
 
 
 
 
 
 
 
Bank debt
$
—

 
$
19,534

 
$
18,127

 
$
37,661

 
 
 
 
 
 
 
 
Liabilities of Och-Ziff, Excluding the Consolidated Funds
 
 
 
 
 
 
 
Obligation to deliver loans subject to forward sale agreement included within other liabilities
$
—

 
$
8,204

 
$
—

 
$
8,204

_______________
(1) As of December 31, 2016, investments in CLO had contractual principal amounts of $21.3 million outstanding.
(2) The Company elected to measure its investments in CLO at fair value through consolidated net income (loss) in order to simplify its accounting for these instruments. Changes in fair value of these investments are included within net gains on investments in Och-Ziff funds and joint ventures in the consolidated statements of comprehensive income (loss). The Company accrues interest income on its investments in CLO using the effective interest method.
Schedule of Changes in Level III Assets and Liabilities
The following table summarizes the changes in the Company’s Level III assets and liabilities for the three months ended March 31, 2017:

December 31, 2016

Transfers
In
 
Transfers
Out
 
Investment
Purchases / Issuances
 
Investment
Sales / Settlements
 
Derivative Settlements
 
Gains (Losses)

March 31, 2017

















(dollars in thousands)
Investments of Och-Ziff, Excluding the Consolidated Funds















Investments in CLO
$
21,341

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
707

 
$
22,048


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments of Consolidated Och-Ziff Funds
 
 
 
 
 
 
 
 
 
 
Bank debt
$
18,127

 
$
771

 
$
(4,878
)
 
$
27,497

 
$
(25,120
)
 
$
—

 
$
266

 
$
16,663


The following table summarizes the changes in the Company’s Level III assets and liabilities for the three months ended March 31, 2016: 
 
December 31, 2015
 
Transfers
In
 
Transfers
Out
 
Investment
Purchases / Issuances
 
Investment
Sales / Settlements
 
Derivative Settlements
 
Gains (Losses)
 
March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
Bank debt
$
1,998,423

 
$
460

 
$
(489
)
 
$
19,614

 
$
(2,014,334
)
 
$
—

 
$
307

 
$
3,981

Real estate investments
719,957

 
—

 
—

 
—

 
(719,957
)
 
—

 
—

 
—

Residential mortgage-backed securities
323,571

 
—

 
—

 
—

 
(323,571
)
 
—

 
—

 
—

Collateralized debt obligations
83,759

 
—

 
—

 
—

 
(83,759
)
 
—

 
—

 
—

Energy and natural resources limited partnerships
70,604

 
—

 
—

 
—

 
(70,604
)
 
—

 
—

 
—

Commercial real estate debt
18,295

 
—

 
—

 
—

 
(18,295
)
 
—

 
—

 
—

Corporate bonds
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Asset-backed securities
23,739

 
—

 
—

 
—

 
(23,739
)
 
—

 
—

 
—

Commercial mortgage-backed securities
13,803

 
—

 
—

 
—

 
(13,803
)
 
—

 
—

 
—

Other investments (including derivatives, net)
1,938

 
—

 
—

 
—

 
(1,938
)
 
—

 
—

 
—

 
$
3,254,089

 
$
460

 
$
(489
)
 
$
19,614

 
$
(3,270,000
)
 
$
—

 
$
307

 
$
3,981
Schedule of Net Unrealized Gains (Losses) on Level III Assets and Liabilities
The table below summarizes the net change in unrealized gains and losses on the Company’s Level III assets and liabilities held as of the reporting date. These gains and losses are included within net gains of consolidated Och-Ziff funds in the Company’s consolidated statements of comprehensive income (loss):
 
Three Months Ended March 31,
 
2017
 
2016
 
 
 
 
 
(dollars in thousands)
Investments of Och-Ziff, Excluding the Consolidated Funds
 
 
 
Investments in CLO
$
707

 
$
—

 
 
 
 
Investments of Consolidated Och-Ziff Funds
 
 
 
Bank Debt
$
113

 
$
36