Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

As of March 31, 2015, the Company has entered into interest rate swap contracts with an aggregate notional amount of $225 million that effectively fixed the interest rate on $225 million of the $225 million unsecured term loan at 2.4%.  These derivatives qualify for hedge accounting.

As of March 31, 2015, the Company has interest rate cap contracts totaling a notional amount of $149.5 million that effectively limit the Company’s exposure to interest rate risk by providing a ceiling on the underlying variable interest rate for substantially all of the Company’s tax exempt variable rate debt.

The Company has total return swaps, with a notional amount of $114.4 million and a carrying value and fair value of $5 thousand at March 31, 2015.

As of March 31, 2015 and December 31, 2014, the aggregate carrying value of the interest rate swap contracts was a liability of $2.2 million and  $1.8 million, respectively, which is classified in other liabilities on the condensed consolidated balance sheets.