Impairment Charges and Reserves (Tables)

9 Months Ended

Sep. 30, 2018

Impairment Charges and Reserves on Assets or Investments

The Company recorded impairment charges and reserves based on the difference between the carrying value of the assets or investments and the estimated fair market value as follows (in millions):

	Three Months					Nine Months
	Ended September 30,					Ended September 30,
	2018		2017			2018		2017
Assets marketed for sale^(A)	$	5.8	$	8.5		$	54.3	$	49.5
Assets included in the spin-off of RVI^(B)		14.1	—				14.1	—
Undeveloped land	—			1.8		—			10.9
Reserve (adjustment) of preferred equity interests^(C)		2.2		(15.4	)		4.5		60.6
Total impairment charges	$	22.1	$	(5.1	)	$	72.9	$	121.0

(A)

The impairments recorded during the three and nine months ended September 30, 2018, primarily were triggered by indicative bids received and changes in market assumptions due to the disposition process. The impairments recorded during the three and nine months ended September 30, 2017, primarily were triggered by changes in asset hold-period assumptions and/or expected future cash flows.

(B)	Charge related to the spin-off of the RVI assets as a result of these assets being classified as held for sale on July 1, 2018, immediately prior to the spin-off.

(C)	As a result of an aggregate valuation allowance on its preferred equity interests in the BRE DDR Joint Ventures (Note 3).

Impairment Charges Measured at Fair Value on Non-Recurring Basis

The following table presents information about the Company’s impairment charges on both financial and nonfinancial assets that were measured on a fair value basis for the nine months ended September 30, 2018. The table also indicates the fair value hierarchy of the valuation techniques used by the Company to determine such fair value (in millions).

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total		Total Losses
September 30, 2018
Long-lived assets held and used	$	—	$	—	$	452.7	$	452.7	$	54.3
Assets included in the spin-off of RVI^(A)		—		—		624.6		624.6		14.1
Preferred equity interests		—		—		199.3		199.3		4.5

(A)

Fair value of assets held for sale is equal to fair market value less estimated costs to sell.

Summary of Significant Unobservable Inputs

The following table presents quantitative information about the significant unobservable inputs used by the Company to determine the fair value of non-recurring items (in millions):

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at				Range
Description	September 30, 2018		Valuation Technique	Unobservable Inputs	2018
Impairment of consolidated assets	$	351.2	Indicative Bid^(A)	Indicative Bid^(A)	N/A
		694.1	Income Capitalization Approach	Market Capitalization Rate	7.4% - 9.3%
		32.0	Discounted Cash Flow	Discount Rate	9.5%
				Terminal Capitalization Rate	10.5%
Reserve of preferred equity interests		199.3	Discounted Cash Flow	Discount Rate	8.2% - 8.9%
				Terminal Capitalization Rate	7.7% - 8.5%
				NOI Growth Rate	1%

(A)

Fair value measurements based upon indicative bids were developed by third-party sources (including offers and comparable sales values), subject to the Company’s corroboration for reasonableness. The Company does not have access to certain unobservable inputs used by these third parties to determine these estimated fair values.