Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Financial Instruments

Schedule of derivative instruments

The following table summarizes the Company’s outstanding interest-rate and foreign currency swap contracts as of December 31, 2014 (dollars and GBP in thousands):

			Fixed
		Hedge	Rate/Buy				Notional/Sell
Date Entered	Maturity Date	Designation	Amount			Floating/Exchange Rate Index	Amount		Fair Value(1)
July 2005(2)	July 2020	Cash Flow		3.82	%	BMA Swap Index	$	45,600	$	(5,939)
November 2008(3)	October 2016	Cash Flow		5.95	%	1 Month LIBOR+1.50%	$	26,000		(1,724)
July 2012(3)	June 2016	Cash Flow		1.81	%	1 Month GBP LIBOR+1.20%	£	137,000		178
July 2012(4)	June 2016	Cash Flow	$	34,100		Buy USD/Sell GBP	£	21,700		276
July 2014(5)	December 2015	Cash Flow	$	7,500		Buy USD/Sell GBP	£	4,400		653

(1) Derivative assets are recorded in other assets, net and derivative liabilities are recorded in accounts payable and accrued liabilities on the consolidated balance sheets.

(2) Represents three interest-rate swap contracts, which hedge fluctuations in interest payments on variable-rate secured debt due to overall changes in hedged cash flows.

(3) Hedges fluctuations in interest payments on variable-rate unsecured debt due to fluctuations in the underlying benchmark interest rate.

(4) Currency swap contract (buy USD/sell GBP) hedges the foreign currency exchange risk related to a portion of the Company’s forecasted interest receipts on GBP denominated senior unsecured notes. Represents a currency swap to sell £7.2 million at a rate of 1.5695 on various dates through June 2016.

(5) Currency swap contract (buy USD/sell GBP) hedges the foreign currency exchange risk related to the Company’s forecasted GBP denominated interest receipts on intercompany loans. Represents a currency swap to sell £0.4 million at a rate of 1.7060 on various dates through December 2015.

Schedule of effect of change in interest and foreign currency rate

The following table summarizes the results of the analysis performed (dollars in thousands):

		Effects of Change in Interest and
		Foreign Currency Rates
		+50 Basis		−50 Basis		+100 Basis		−100 Basis
Date Entered	Maturity Date	Points		Points		Points		Points
Interest rates:
July 2005	July 2020	$	1,170	$	(1,194)	$	2,351	$	(2,375)
November 2008	October 2016		235		(220)		462		(447)
July 2012	June 2016		1,533		(1,560)		3,079		(3,106)
Foreign Currency:
July 2012	June 2016		(189)		149		(358)		319
July 2014	December 2015		(38)		30		(72)		64