Derivatives Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives Instruments and Hedging Activities

9. Derivative Instruments and Hedging Activities

We manage our market risk on variable rate debt by entering into interest rate swaps to fix the rate on all or a portion of the debt for varying periods through maturity. These interest rate swaps are accounted for as derivative instruments and, pursuant to ASC 815, are recorded on our balance sheet at fair value. Changes in the fair value of interest rate swaps are accounted for based on the hedging relationship and their designation and qualification as either fair value hedges or cash flow hedges.

Interest Rate Swaps – Non-designated Hedges

As of December 31, 2015, we had 14 interest rate swaps with an aggregate notional amount of $1.2 billion that were not designated as hedges. Changes in the fair value of interest rate swaps that are not designated as hedges are recognized in earnings. In the year ended December 31, 2015 and for the period from November 24, 2014 to December 31, 2014, we recognized unrealized gain of $75,760,000 and $15,084,000, respectively, from the changes in the fair value of these interest rate swaps.  The table below provides additional details on our interest rate swaps that are not designated as hedges.

	Notional				Strike			Fair Value as of
Property	Amount		Effective Date	Maturity Date	Rate			December 31, 2015		December 31, 2014
(Amounts in thousands)
One Market Plaza	$	840,000	Aug-2007 to Aug-2012	Aug-2017		5.02	%	$	55,404	$	86,099
31 W 52nd Street		237,600	Dec-2007	Dec-2017		4.79	%		17,661		28,748
900 Third Avenue		162,000	Nov-2007	Nov-2017		4.78	%		11,630		19,158
1633 Broadway (1)		-	n/a	n/a	n/a				-		60,191
Total interest rate swap liabilities related to non-designated hedges								$	84,695	$	194,196
(1) Terminated in connection with the refinancing of 1633 Broadway.

Interest Rate Swaps – Designated as Cash Flow Hedges

On September 16, 2015, we entered into three interest rate swaps with an aggregate notional amount of $1.0 billion on 1633 Broadway. These interest rate swaps are designated as cash flow hedges. Changes in the fair value of interest rate swaps that are designated as cash flow hedges are recognized in accumulated other comprehensive income (outside of earnings).  On November 25, 2015, we entered into a forward starting interest rate swap with an aggregate notional amount of $400,000,000 to extend the maturity of one of the three swaps that were entered on September 16, 2015 for an additional one year period. In the year ended December 31, 2015, we recognized other comprehensive losses of $9,241,000 from the changes in the fair value of these interest rate swaps. The table below provides additional details on our interest rate swaps that are designated as cash flow hedges.

	Notional				Strike			Fair Value as of
Property	Amount		Effective Date	Maturity Date	Rate			December 31, 2015		December 31, 2014
(Amounts in thousands)
1633 Broadway	$	1,000,000	Dec 2015	Dec 2020 to Dec-2022		1.79	%	$	9,204	$	-
1633 Broadway	$	400,000	Dec-2020	Dec-2021		2.35	%		37		-
Total interest rate swap liabilities related to cash flow hedges								$	9,241	$	-