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Fair Value of Derivative Financial Instruments
3 Months Ended
Mar. 31, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS

9. FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS

The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of March 31, 2019 and December 31, 2018. The notional amounts provide an indication of the extent of the Company’s involvement in these instruments at that time, but do not represent exposure to credit, interest rate or market risks (amounts presented in thousands and included in other assets and other liabilities on the Company’s consolidated balance sheets).

 

Hedge Product

 

Hedge Type

 

Designation

 

Notional Amount

 

 

Strike

 

 

Trade Date

 

Maturity Date

 

Fair value

 

 

 

 

 

 

 

3/31/2019

 

 

12/31/2018

 

 

 

 

 

 

 

 

 

 

3/31/2019

 

 

12/31/2018

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Swap

 

Interest Rate

 

Cash Flow

(a)

$

250,000

 

 

$

250,000

 

 

 

2.868

%

 

October 8, 2015

 

October 8, 2022

 

$

4,522

 

 

$

7,008

 

Swap

 

Interest Rate

 

Cash Flow

(a)

 

25,774

 

 

 

25,774

 

 

 

3.300

%

 

December 22, 2011

 

January 30, 2021

 

 

185

 

 

 

292

 

Swap

 

Interest Rate

 

Cash Flow

(a)

 

25,774

 

 

 

25,774

 

 

 

3.090

%

 

January 6, 2012

 

October 30, 2019

 

 

151

 

 

 

183

 

 

 

 

 

 

 

$

301,548

 

 

$

301,548

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Hedging unsecured variable rate debt.  

The Company measures its derivative instruments at fair value and records them in the “Other assets” and (“Other liabilities”) captions on the Company’s consolidated balance sheets.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that the inputs utilized to determine the fair value of derivative instruments are classified in Level 2 of the fair value hierarchy.

Disclosure about the fair value of derivative instruments is based upon pertinent information available to management as of March 31, 2019 and December 31, 2018. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since March 31, 2019. Current estimates of fair value may differ from the amounts presented herein.