Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative 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 consolidated balance sheets 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 June 30, 2016, we had 11 interest rate swaps with an aggregate notional amount of $1.0 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.  We recognized unrealized gains from the changes in the fair value of these interest rate swaps of $10,073,000 and $21,747,000 for the three months ended June 30, 2016 and 2015, respectively and $16,933,000 and $33,725,000 for the six months ended June 30, 2016 and 2015, respectively. 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			June 30, 2016		December 31, 2015
(Amounts in thousands)
One Market Plaza	$	840,000	Aug-2007 - Aug-2012	Aug-2017		5.02	%	$	42,061	$	55,404
900 Third Avenue		162,000	Nov-2007	Nov-2017		4.78	%		9,661		11,630
31 West 52nd Street (1)		-	n/a	n/a	n/a				-		17,661
Total interest rate swap liabilities related to non-designated hedges								$	51,722	$	84,695

⁽¹⁾ Terminated in connection with the refinancing of 31 West 52nd Street. See Note 7, Debt.

Interest Rate Swaps – Designated as Cash Flow Hedges

As of June 30, 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 and six months ended June 30, 2016, we recognized other comprehensive losses of $11,747,000 and $41,614,000, 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 designated as cash flow hedges.

	Notional				Strike			Fair Value as of
Property	Amount		Effective Date	Maturity Date	Rate			June 30, 2016		December 31, 2015
(Amounts in thousands)
1633 Broadway	$	1,000,000	Dec 2015	Dec-2020 - Dec-2022		1.79	%	$	47,246	$	9,204
1633 Broadway		400,000	Dec-2020	Dec-2021		2.35	%		3,609		37
Total interest rate swap liabilities related to cash flow hedges								$	50,855	$	9,241