Derivatives Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives Instruments and Hedging Activities

8.     Derivative Instruments and Hedging Activities

We manage our market risk on variable rate debt by entering into interest rate swaps to fix the rate on all or a portion of the debt for varying periods through maturity. These interest rate swaps are accounted for as derivative instruments and, pursuant to ASC Topic 815, are recorded on our balance sheet at fair value. Changes in the fair value of interest rate swaps are accounted for based on the hedging relationship and their designation and qualification as either fair value hedges or cash flow hedges.

Interest Rate Swaps – Non-designated Hedges

As of March 31, 2016, we had 14 interest rate swaps with an aggregate notional amount of $1.2 billion that were not designated as hedges. Changes in the fair value of interest rate swaps that are not designated as hedges are recognized in earnings. For the three months ended March 31, 2016 and 2015, we recognized unrealized gains of $6,860,000 and $11,978,000, respectively, from the changes in the fair value of these interest rate swaps.  The table below provides additional details on our interest rate swaps that are not designated as hedges.

	Notional				Strike			Fair Value as of
Property	Amount		Effective Date	Maturity Date	Rate			March 31, 2016		December 31, 2015
(Amounts in thousands)
One Market Plaza	$	840,000	Aug-2007 - Aug-2012	Aug-2017		5.02	%	$	50,046	$	55,404
31 West 52nd Street		237,600	Dec-2007	Dec-2017		4.79	%		16,800		17,661
900 Third Avenue		162,000	Nov-2007	Nov-2017		4.78	%		10,989		11,630
Total interest rate swap liabilities related to non-designated hedges								$	77,835	$	84,695

Interest Rate Swaps – Designated as Cash Flow Hedges

As of March 31, 2016, we had three interest rate swaps with an aggregate notional amount of $1.0 billion that were designated as cash flow hedges.  We also have entered into a forward starting interest rate swap with an aggregate notional amount of $400,000,000 to extend the maturity of one of the three swaps for an additional year.  Changes in the fair value of interest rate swaps that are designated as cash flow hedges are recognized in accumulated other comprehensive loss (outside of earnings).  For the three months ended March 31, 2016, we recognized other comprehensive losses of $29,867,000 from the changes in the fair value of these interest rate swaps. The table below provides additional details on our interest rate swaps that are designated as cash flow hedges.

	Notional				Strike			Fair Value as of
Property	Amount		Effective Date	Maturity Date	Rate			March 31, 2016		December 31, 2015
(Amounts in thousands)
1633 Broadway	$	1,000,000	Dec 2015	Dec-2020 - Dec-2022		1.79	%	$	36,799	$	9,204
1633 Broadway		400,000	Dec-2020	Dec-2021		2.35	%		2,309		37
Total interest rate swap liabilities related to cash flow hedges								$	39,108	$	9,241