Derivative Financial Instruments

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The following table lists the derivative financial instrument assets and (liabilities) held by us as of September 30, 2015 (in thousands):

Notional Amount		Index	Rate		Fair Value			Instrument	Maturity
$	100,000	LIBOR	0.86	%	$	(353	)	Swap	6/15/2016
50,000		LIBOR	1.39		(622		)	Swap	7/17/2019
105,000		LIBOR	1.24		(689		)	Swap	7/17/2019
26,291		LIBOR + 1.45%	4.98		(2,590		)	Swap	5/1/2020

The following table lists the derivative financial instrument assets and (liabilities) held by us as of December 31, 2014 (in thousands):

Notional Amount		Index	Rate		Fair Value			Instrument	Maturity
$	100,000	LIBOR	0.86	%	$	(443	)	Swap	6/15/2016
50,000		LIBOR	1.39		317			Swap	7/17/2019
105,000		LIBOR	1.24		1,397			Swap	7/17/2019
26,874		LIBOR + 1.45%	4.98		(2,445		)	Swap	5/1/2020

As of September 30, 2015 and December 31, 2014, the gross fair value of our derivative financial instruments was as follows (in thousands):

	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
Derivatives Not Designated as Hedging Instruments:	Balance Sheet Location	September 30, 2015		December 31, 2014		Balance Sheet Location	September 30, 2015		December 31, 2014
Interest rate swaps	Receivables and other assets	$	—	$	1,714	Derivative financial instruments	$	4,254	$	2,888

There were no derivatives offset in our accompanying condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014. As of September 30, 2015 and December 31, 2014, we had derivatives subject to enforceable master netting arrangements which allowed for net cash settlement with the respective counterparties (in thousands):

	September 30, 2015						December 31, 2014
	Gross Amounts		Amounts Subject to Enforceable Master Netting Arrangements		Net Amounts		Gross Amounts		Amounts Subject to Enforceable Master Netting Arrangements		Net Amounts
Asset derivatives	$	—	$	—	$	—	$	1,714	$	—	$	1,714
Liability derivatives	4,254		—		4,254		2,888		—		2,888

We have agreements with each of our interest rate swap derivative counterparties that provide that if we default on certain of our unsecured indebtedness, then our counterparties could declare us in default on our interest rate swap derivative obligations resulting in an acceleration of the indebtedness. In addition, we are exposed to credit risk in the event of non-performance by our derivative counterparties. We believe we mitigate the credit risk by entering into agreements with credit-worthy counterparties. We record counterparty credit risk valuation adjustments on interest rate swap derivative assets in order to properly reflect the credit quality of the counterparty. In addition, our fair value of interest rate swap derivative liabilities is adjusted to reflect the impact of our credit quality. As of September 30, 2015, there have been no termination events or events of default related to our interest rate swaps.