Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

10. Derivative Instruments and Hedging Activities

Interest Rate Swaps – Designated as Cash Flow Hedges

We have interest rate swaps with an aggregate notional amount of $1.0 billion that are designated as cash flow hedges. We also have entered into forward starting interest rate swaps with an aggregate notional amount of $400,000,000 to extend the maturity of certain swaps for an additional year. Changes in the fair value of interest rate swaps that are designated as cash flow hedges are recognized in “other comprehensive income (loss)” (outside of earnings). We recognized other comprehensive income of $7,273,000, $10,618,000, and $8,161,000 for the years ended December 31, 2018, 2017 and 2016, respectively, from the changes in fair value of these interest rate swaps. See Note 12, Accumulated Other Comprehensive Income (Loss). During the next twelve months, we estimate that $7,489,000 of the amounts recognized in accumulated other comprehensive income will be reclassified as a decrease in interest expense.

The following table summarizes the fair value of our interest rate swaps that are designated as cash flow hedges.

	Fair Value as of December 31,
	2018		2017
Interest rate swap assets designated as cash flow hedges (included in “other assets”)	$	16,859	$	9,855
Interest rate swap liabilities designated as cash flow hedges (included in “other liabilities”)	$	48	$	317

We have agreements with various derivative counterparties that contain provisions wherein a default on our indebtedness could be deemed a default on our derivative obligations, which would require us to either post collateral up to the fair value of our derivative obligations or settle the obligations for cash. As of December 31, 2018, we did not have such obligations relating to our swaps.

Interest Rate Swaps – Non-designated Hedges

As of December 31, 2018 and 2017, we did not have interest rate swaps that were not designated as hedges. Prior to December 31, 2017, we had interest rate swaps on One Market Plaza, 900 Third Avenue and 31 West 52nd Street that were not designated as a hedges. We recognized unrealized gains of $1,802,000 and $39,814,000 for the years ended December 31, 2017 and 2016, respectively, in connection with these interest rate swaps, which are included as “unrealized gain on interest rate swaps” on our consolidated statements of income.