Marketable Securities

12 Months Ended

Dec. 31, 2017

Our portfolio of marketable securities is comprised of equity securities that are classified as available-for-sale. Available-for-sale securities are presented on our consolidated balance sheets at fair value. Unrealized gains and losses resulting from the mark-to-market of these securities are included in “other comprehensive income (loss).” We adopted ASU 2016-01 effective January 1, 2018. While the adoption of ASU 2016-01 requires us to continue to measure "marketable securities" at fair value at each reporting date, the changes in fair value will be recognized in current period earnings as opposed to "other comprehensive income (loss)." As a result, on January 1, 2018 we will record an increase to retained earnings of $109,553,000 to recognize the unrealized gains previously recorded within “accumulated other comprehensive income”. Subsequent changes in the fair value of our marketable securities will be recorded to “interest and other investment income, net”.

We evaluate our portfolio of marketable securities for impairment each reporting period. For each of the securities in our portfolio with unrealized losses, we review the underlying cause of the decline in value and the estimated recovery period, as well as the severity and duration of the decline. In our evaluation, we consider our ability and intent to hold these investments for a reasonable period of time sufficient for us to recover our cost basis. We also evaluate the near-term prospects for each of these investments in relation to the severity and duration of the decline.

Below is a summary of our marketable securities portfolio as of December 31, 2017 and 2016.




(Amounts in thousands)	As of December 31, 2017						As of December 31, 2016
	Fair Value		GAAP Cost		Unrealized Gain		Fair Value		GAAP Cost		Unrealized Gain
Equity securities:
Lexington Realty Trust	$	178,226	$	72,549	$	105,677	$	199,465	$	72,549	$	126,916
Other	4,526		650		3,876		4,239		650		3,589
	$	182,752	$	73,199	$	109,553	$	203,704	$	73,199	$	130,505