Derivative and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Derivatives

As of December 31, 2014 and 2013, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

	December 31, 2014			December 31, 2013
Derivatives	Number of Instruments	Notional Amount		Number of Instruments	Notional Amount
		(In thousands)			(In thousands)
Interest Rate Swap (GBP)	20	$	371,225	7	$	35,465
Interest Rate Swap (EUR)	10	$	282,999	—	$	—
Total	30	$	654,224	7	$	35,465

Schedule of Derivative Instruments

As of December 31, 2014 and 2013, the Company had the following outstanding cross currency swaps that were used to hedge its net investments in foreign operations:

	December 31, 2014			December 31, 2013
Derivatives	Number of Instrument (2)	Notional Amount (2)		Number of Instruments (1)		Notional Amount (1)
		(In thousands)				(In thousands)
Foreign currency swaps (GBP-USD)	5	$	107,623	7		$	35,597
Foreign currency swaps (EUR-USD)	10	134,285		—	—	—
Total	15	$	241,908	7		$	35,597

____________________________________

(1) Payments and obligations pursuant to these foreign currency swap agreements are guaranteed by AR Capital, LLC, the entity which wholly owns the Sponsor as of December 31, 2013.

(2) Payments and obligations pursuant to these foreign currency swap agreements are guaranteed by the Company, ARC Global Holdco, LLC and OP as of December 31, 2014.

Disclosure of Credit Derivatives

As of December 31, 2014 and December 31, 2013, the Company had the following outstanding derivatives that were not designated as hedges under qualifying hedging relationships.

	December 31, 2014			December 31, 2013
Derivatives	Number of Instruments	Notional Amount		Number of Instruments	Notional Amount
		(In thousands)			(In thousands)
EUR-USD forwards	31	$	12,699	—	$	—
GBP-USD forwards	80	$	13,664	—	$	—

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2014 and December 31, 2013:

(In thousands)	Balance Sheet Location	December 31, 2014			December 31, 2013
Derivatives designated as hedging instruments:
Interest rate swaps	Derivative assets, at fair value	$	18		$	734
Foreign currency swaps	Derivative assets, at fair value	$	11,736		$	—
Interest rate swaps	Derivative liabilities, at fair value	$	(5,668	)	$	—
Foreign currency swaps	Derivative liabilities, at fair value	$	(447	)	$	(2,565	)
Derivatives not designated as hedging instruments:
GBP-USD Forwards	Derivative assets, at fair value	$	1,148		$	—
EUR-USD Forwards	Derivative assets, at fair value	$	736		$	—

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the years endedDecember 31, 2014, 2013 and 2012.

	Year Ended December 31,
(In thousands)	2014			2013		2012
Amount of gain (loss) recognized in accumulated other comprehensive income from derivatives (effective portion)	$	5,670		(1,901	)	$	(55	)
Amount of loss reclassified from accumulated other comprehensive income into income as interest expense (effective portion)	$	(2,087	)	(123	)	$	(2	)
Amount of gain (loss) recognized in income on derivative instruments (ineffective portion and amount excluded from effectiveness testing)	$	—		—		$	—

Offsetting Assets

The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the accompanying consolidated balance sheets.

											Gross Amounts Not Offset on the Balance Sheet
Derivatives (In thousands)	Gross Amounts of Recognized Assets		Gross Amounts of Recognized (Liabilities)			Gross Amounts Offset on the Balance Sheet		Net Amounts of Assets (Liabilities) presented on the Balance Sheet			Financial Instruments		Cash Collateral Received (Posted)		Net Amount
December 31, 2014	$	13,638	$	(6,115	)	$	—	$	7,523		$	—	$	—	$	7,523
December 31, 2013	$	734	$	(2,565	)	$	—	$	(1,831	)	$	—	$	—	$	(1,831	)