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Derivative Financial Instruments
12 Months Ended
Dec. 31, 2013
Derivative Financial Instruments
13. Derivative Financial Instruments

The following table summarizes the terms of the forward interest rate swaps held by the Company or through its joint ventures and the asset (liability) that has been recorded as of December 31, 2013 (in thousands):

 

                              Fair value asset (liability)  
                              December 31,  
Notional
amount
    Strike (1)     Credit
Spread 
(1)
    Trade
date
    Maturity
date
    2013     2012  
$ 12,421  (2)      1.3     2.6     1/17/13        1/15/18      $ 83     $ —     
$ 38,255  (3)      2.7     2.5     9/6/13        7/10/18      $ (590   $ —     
$ 26,067  (3)      2.8     2.5     9/6/13        8/29/18      $ (435   $ —     
$
29,952
 (3) 
    0.9     2.7    
11/13/13
  
    5/31/16      $ (10   $ —     
$
30,000
 (3) 
    1.1     4.3     10/22/13       
8/19/16
  
  $ (8   $ —     

The following table summarizes the gross and net amounts of the Company’s forward interest rate swaps as presented in the accompanying consolidated balance sheet as of December 31, 2013 (in thousands):

 

      Gross and net amounts of asset (liability)
presented in the accompanying
consolidated balance sheet
as of December 31, 2013
    Gross amounts in the
accompanying consolidated balance
sheet as of December 31, 2013
 
Notional
amount
    Gross
amount
    Offset
amount
    Net
amount
    Financial
Instruments
    Cash
Collateral
    Net
Amount
 
$ 12,421  (2)    $ 83     $ —        $ 83     $ 83     $ —        $ 83  
$ 38,255  (3)    $ (590   $ —        $ (590   $ (590   $ —        $ (590
$ 26,067  (3)    $ (435   $ —        $ (435   $ (435   $ —        $ (435
$ 29,952  (3)    $ (10   $ —        $ (10   $ (10   $ —        $ (10
$ 30,000  (3)    $ (8   $ —        $ (8   $ (8   $ —        $ (8

 

FOOTNOTES:

 

(1)  The all-in rates for each swap are equal to the sum of the Strike and Credit Spread detailed above.
(2)  Amounts related to the swap held by the Montecito Joint Venture for which the proportion of fair value relative to the Company’s ownership percentage are included in investments in unconsolidated entities in the accompanying consolidated balance sheet as of December 31, 2013.
(3)  Amounts are included in other liabilities in the accompanying consolidated balance sheet as of December 31, 2013.

The forward interest rate swaps are valued primarily based on inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, volatilities, and credit risks), and are classified as Level 2 in the fair value hierarchy. Determining fair value requires management to make certain estimates and judgments. Changes in assumptions could have a positive or negative impact on the estimated fair values of such instruments could, in turn, impact the Company’s or its joint venture’s results of operations.

The Company, or its equity method investments, did not hold any derivative financial instruments as of December 31, 2012 or for the years ended December 31, 2012 and 2011.