XML 42 R32.htm IDEA: XBRL DOCUMENT v3.10.0.1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of fair value of the Company's derivative financial instruments
The following table summarizes certain terms of the Company's derivative contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Asset (Liability)
 
 
 
 
 
 
 
 
Fixed Interest
 
Effective
 
Maturity
 
June 30,
 
December 31,
(In thousands)
 
 
 
Balance Sheet Location
 
Notional
 
Rate
 
Date
 
Date
 
2018
 
2017
Currently-paying contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swap
 
(a)
 
Accounts payable and accrued expenses
 
$
18,926

 
2.96
%
 
5/10/2011
 
10/31/2019
 
$
—

 
$
(286
)
Interest Rate Swap
 
(b)
 
Prepaid expenses and other assets, net
 
40,000

 
1.66
%
 
5/6/2015
 
5/1/2020
 
664

 
299

Interest Rate Swap
 
(b)
 
Prepaid expenses and other assets, net
 
119,359

 
1.14
%
 
10/3/2016
 
9/12/2021
 
5,747

 
4,007

Interest Rate Cap
 
(c)
 
Prepaid expenses and other assets, net
 
75,000

 
5.00
%
 
9/1/2017
 
8/31/2019
 
—

 
—

Interest Rate Cap
 
(d)
 
Prepaid expenses and other assets, net
 
230,000

 
2.50
%
 
12/22/2016
 
12/23/2019
 
684

 
164

Interest Rate Swap
 
(b) (e)
 
Prepaid expenses and other assets, net
 
50,000

 
2.65
%
 
12/31/2017
 
12/31/2027
 
—

 
(1,124
)
Interest Rate Swap
 
(b) (e)
 
Prepaid expenses and other assets, net
 
100,000

 
2.68
%
 
12/31/2017
 
12/31/2027
 
—

 
(2,509
)
Interest Rate Swap
 
(b) (e)
 
Prepaid expenses and other assets, net
 
100,000

 
2.62
%
 
12/31/2017
 
12/31/2027
 
—

 
(2,042
)
Interest Rate Collar
 
(b) (f)
 
Prepaid expenses and other assets, net
 
51,592

 
1.50% - 2.50%

 
7/1/2018
 
5/1/2019
 
24

 
—

Interest Rate Collar
 
(b) (f)
 
Prepaid expenses and other assets, net
 
193,967

 
2.00% - 3.00%

 
5/1/2019
 
5/1/2020
 
62

 
—

Interest Rate Collar
 
(b) (f)
 
Prepaid expenses and other assets, net
 
354,217

 
2.25% - 3.25%

 
5/1/2020
 
5/1/2021
 
88

 
—

Interest Rate Collar
 
(b) (f)
 
Accounts payable and accrued expenses
 
381,404

 
2.75% - 3.50%

 
5/1/2021
 
4/30/2022
 
(694
)
 
—

Total fair value derivative assets
 
 
 
 
 
 
 
 
 
 
 
$
7,269

 
$
4,470

Total fair value derivative liabilities
 
 
 
 
 
 
 
 
 
 
 
$
(694
)
 
$
(5,961
)
 
(a)
On January 19, 2018 HHC repaid in full the $18.9 million mortgage loan for 110 North Wacker and settled the related swap liability of $0.3 million.
(b)
Denotes derivatives designated as hedging instruments.
(c)
Denotes a derivative contract that is not currently designated as a hedging instrument. Interest (income) expense included in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018 related to this contract is not meaningful.  
(d)
Denotes a derivative contract that is not currently designated as a hedging instrument. Interest (income) expense of $0.2 million and $0.5 million is included in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018, respectively, related to this contract.
(e)
On May 17, 2018, the Company settled $250 million in forward starting swaps.
(f)
On May 17, 2018 and May 18, 2018, the Company entered into interest rate collars which are designated as cash flow hedges.
Summary of effect of the Company's derivative financial instruments on the Condensed Consolidated Statements of Operations
The tables below present the effect of the Company's derivative financial instruments on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018 and 2017 (in thousands):
 
 
Amount of Gain (Loss) Recognized
 
Amount of Gain (Loss) Recognized
 
 
in AOCI on Derivative
 
in AOCI on Derivative
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Derivatives in Cash Flow Hedging Relationships
 
2018
 
2017
 
2018
 
2017
Interest rate swaps
   
$
6,005

 
$
(2,816
)
 
$
14,266

 
$
(2,581
)
 
 
 
Amount of Gain (Loss) Reclassified from
 
Amount of Gain (Loss) Reclassified from
 
 
AOCI into Operations
 
AOCI into Operations
 
 
Three Months Ended June 30,
 
Three Months Ended June 30,
Location of Loss Reclassified from AOCI into Operations
 
2018
 
2017
 
2018
 
2017
Interest expense
   
$
652

 
$
(133
)
 
$
868

 
$
(331
)

 
 
Total Interest Expense Presented
 
Total Interest Expense Presented
 
 
in the Results of Operations in which
 
in the Results of Operations in which
 
 
the Effects of Cash Flow Hedges are Recorded
 
the Effects of Cash Flow Hedges are Recorded
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Interest Expense Presented in Results of Operations
 
2018
 
2017
 
2018
 
2017
Interest expense
 
$
18,903

 
$
14,448

 
$
35,512

 
$
32,306