Derivative Financial Instruments

12 Months Ended

Dec. 31, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

12. Derivative Financial Instruments

The following summarizes the terms of the Company’s, or its equity method investments’, derivative financial instruments and the corresponding asset (liability) as of December 31, 2016 and 2015 (in thousands):

												Fair value asset (liability) as of
Notional Amount			Strike (1)			Credit Spread (1)			Trade date	Forward date	Maturity date	December 31, 2016			December 31, 2015
$	12,050	(2)		1.3	%		2.6	%	1/17/2013	1/15/2015	1/16/2018	$	(44	)	$	(85	)
$	37,446	(2)		2.7	%		2.5	%	9/6/2013	8/17/2015	7/10/2018	$	(878	)	$	(1,472	)
$	25,516	(2)		2.8	%		2.5	%	9/6/2013	8/17/2015	8/29/2018	$	(667	)	$	(1,086	)
$	10,422	(3)		3.0	%	―		%	6/27/2014	6/30/2014	6/30/2017	$	—		$	1
$	47,983	(2)		2.4	%		2.9	%	8/15/2014	6/1/2016	6/2/2019	$	(949	)	$	(1,066	)
$	82,370	(2)		2.3	%		2.4	%	9/12/2014	8/1/2015	7/15/2019	$	(1,512	)	$	(2,283	)
$	6,876	(2)		1.2	%		2.3	%	11/12/2014	11/15/2014	10/15/2017	$	(17	)	$	(37	)
$	175,000	(2)		1.6	%		2.0	%	12/23/2014	12/19/2014	2/19/2019	$	(992	)	$	(1,694	)
$	134,258	(2)		1.7	%		2.0	%	1/9/2015	12/10/2015	12/22/2019	$	(976	)	$	(1,795	)
$	260,000	(3)		1.5	%	―		%	11/19/2015	11/19/2015	11/30/2018	$	600		$	1,988
$	150,000	(3)		1.5	%	―		%	3/1/2016	3/1/2016	11/30/2018	$	346		$	—

The following summarizes the gross and net presentation of amounts related to the Company’s, or its equity method investments’, derivative financial instruments as of December 31, 2016 (in thousands):

			Gross and net amounts of asset (liability) as of December 31, 2016								Gross amounts as of December 31, 2016
Notional amount			Gross amount			Offset amount		Net amount			Financial Instruments			Cash Collateral		Net Amount
$	12,050	(2)	$	(44	)	$	—	$	(44	)	$	(44	)	$	—	$	(44	)
$	37,446	(2)	$	(878	)	$	—	$	(878	)	$	(878	)	$	—	$	(878	)
$	25,516	(2)	$	(667	)	$	—	$	(667	)	$	(667	)	$	—	$	(667	)
$	10,422	(3)	$	—		$	—	$	—		$	—		$	—	$	—
$	47,983	(2)	$	(949	)	$	—	$	(949	)	$	(949	)	$	—	$	(949	)
$	82,370	(2)	$	(1,512	)	$	—	$	(1,512	)	$	(1,512	)	$	—	$	(1,512	)
$	6,876	(2)	$	(17	)	$	—	$	(17	)	$	(17	)	$	—	$	(17	)
$	175,000	(2)	$	(992	)	$	—	$	(992	)	$	(992	)	$	—	$	(992	)
$	134,258	(2)	$	(976	)	$	—	$	(976	)	$	(976	)	$	—	$	(976	)
$	260,000	(3)	$	600		$	—	$	600		$	600		$	—	$	600
$	150,000	(3)	$	346		$	—	$	346		$	346		$	—	$	346

12. Derivative Financial Instruments (continued)

The following summarizes the gross and net presentation of amounts related to the Company’s, or its equity method investments’, derivative financial instruments as of December 31, 2015 (in thousands):

			Gross and net amounts of asset (liability) as of December 31, 2015								Gross amounts as of December 31, 2015
Notional amount			Gross amount			Offset amount		Net amount			Financial Instruments			Cash Collateral		Net Amount
$	12,248	(2)	$	(85	)	$	—	$	(85	)	$	(85	)	$	—	$	(85	)
$	38,052	(2)	$	(1,472	)	$	—	$	(1,472	)	$	(1,472	)	$	—	$	(1,472	)
$	25,929	(2)	$	(1,086	)	$	—	$	(1,086	)	$	(1,086	)	$	—	$	(1,086	)
$	10,699	(3)	$	1		$	—	$	1		$	1		$	—	$	1
$	48,415	(2)	$	(1,066	)	$	—	$	(1,066	)	$	(1,066	)	$	—	$	(1,066	)
$	83,797	(2)	$	(2,283	)	$	—	$	(2,283	)	$	(2,283	)	$	—	$	(2,283	)
$	6,998	(2)	$	(37	)	$	—	$	(37	)	$	(37	)	$	—	$	(37	)
$	175,000	(2)	$	(1,694	)	$	—	$	(1,694	)	$	(1,694	)	$	—	$	(1,694	)
$	138,698	(2)	$	(1,795	)	$	—	$	(1,795	)	$	(1,795	)	$	—	$	(1,795	)
$	260,000	(3)	$	1,988		$	—	$	1,988		$	1,988		$	—	$	1,988

FOOTNOTES:

⁽¹⁾ The all-in rates are equal to the sum of the Strike and Credit Spread detailed above.  

⁽²⁾ Amounts related to interest rate swaps held by the Company, or its equity method investments, which are recorded at fair value and included in either other assets or other liabilities in the accompanying consolidated balance sheets.

⁽³⁾ Amounts related to the interest rate caps held by the Company, or its equity method investments, which are recorded at fair value and included in other assets in the accompanying consolidated balance sheets.

Although the Company has determined that the majority of the inputs used to value its derivative financial instruments 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 the Company and its counterparties.  The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative financial instruments and has determined that the credit valuation adjustments on the overall valuation adjustments are not significant to the overall valuation of its derivative financial instruments. As a result, the Company determined that its derivative financial instruments valuation in its entirety is classified in Level 2 of the fair value hierarchy. Determining fair value requires management to make certain estimates and judgments.  Changes in assumptions could have a positive or negative impact on the estimated fair values of such instruments which could, in turn, impact the Company’s or its joint venture’s results of operations.