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Derivative and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Interest rate derivatives designated as cash flow hedges
As of December 31, 2019, we had the following outstanding derivatives that were designated and are expected to be effective as cash flow hedges of the interest payments and/or the currency exchange rate on the associated debt.
Instrument Type
 
Ownership
 
Notional Amount
 
Swap Rate
 
Credit Spread on Loan
 
Total Swapped Rate on Loan
 
Maturity Date
Consolidated Subsidiaries:
 
 
 
 
 
 
 
 
 
 
 
 
Receive variable (LIBOR) /pay-fixed swap (1)
 
100
%
 
100,000

 
2.14
%
 
1.55
%
(1) 
3.69
%
(1) 
February 2022
Receive variable (LIBOR) /pay-fixed swap (1)
 
100
%
 
100,000

 
2.14
%

1.55
%
(1) 
3.69
%
(1) 
February 2022
Receive variable (LIBOR) /pay-fixed swap (1)
 
100
%
 
50,000

 
2.14
%

1.55
%
(1) 
3.69
%
(1) 
February 2022
Receive variable (LIBOR) /pay-fixed swap (1)
 
100
%
 
50,000

 
2.14
%

1.55%/1.38%

(1) 
3.69%/3.51%

(1) 
February 2022
Receive variable (LIBOR) / pay-fixed swap (2)
 
100
%
 
125,000

 
3.02
%

1.60
%
(2) 
4.62
%
(2) 
March 2023
Receive variable (LIBOR) / pay-fixed swap (2)
 
100
%
 
75,000

 
3.02
%

1.60
%
(2) 
4.62
%
(2) 
March 2023
Receive variable (LIBOR) / pay-fixed swap (2)
 
100
%
 
50,000

 
3.02
%

1.60
%
(2) 
4.62
%
(2) 
March 2023
Receive variable (LIBOR) /pay-fixed swap (3)
 
100
%
 
12,000

 
2.09
%
 
1.40
%
 
3.49
%
 
March 2024
Unconsolidated Joint Ventures:
 
 

 
 

 
 

 
 

 
 

 
 
Receive variable (LIBOR) /pay-fixed swap (4)
 
50.1
%
 
158,590

 
1.83
%
 
1.75
%
 
3.58
%
 
December 2021
Receive variable (LIBOR) USD/pay-fixed Korean Won (KRW) cross-currency interest rate swap (5)
 
17.15
%
 
52,065 USD / 60,500,000 KRW

 
1.52
%
 
1.60
%
 
3.12
%
 
September 2020

(1)
The hedged forecasted transaction for each of these swaps is the first previously unhedged one-month LIBOR-indexed interest payments accrued and made each month on a debt principal amount equal to the swap notional amount, regardless of the specific debt agreement from which they may flow. We are currently using these swaps to manage interest rate risk on the $275 million unsecured term loan and $25 million on the $1.1 billion primary unsecured revolving line of credit. The credit spread on these loans can vary within a range of 1.15% to 1.80% on the $275 million unsecured term loan and 1.05% to 1.60% on the $1.1 billion unsecured revolving line of credit, depending on our total leverage ratio at the measurement date, resulting in an effective rate in the range of 3.29% to 3.94% on the $275 million unsecured term loan and 3.19% to 3.74% on $25 million of the $1.1 billion primary unsecured revolving line of credit during the remaining swap period.
(2)
The hedged forecasted transaction for each of these swaps is the first previously unhedged one-month LIBOR-indexed interest payments accrued and made each month on a debt principal amount equal to the swap notional amount, regardless of the specific debt agreement from which they may flow beginning with the March 2019 effective date of these swaps. We are currently using these swaps to manage interest rate risk on the $250 million unsecured term loan. The credit spread on this loan can vary within a range of 1.25% to 1.9%, depending on our total leverage ratio at the measurement date, resulting in an effective rate in the range of 4.27% to 4.92% during the swap period.
(3)
The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on the U.S. headquarters building.
(4)
The notional amount on this swap is equal to the outstanding principal balance of the floating rate loan on International Plaza.
(5)
The notional amount on this swap is equal to the outstanding principal balance of the U.S. dollar construction loan for Starfield Hanam. There is a cross-currency interest rate swap to fix the interest rate on the loan and swap the related principal and interest payments from U.S. dollars to KRW in order to reduce the impact of fluctuations in interest rates and exchange rates on the cash flows of the joint venture. The currency swap exchange rate is 1,162.0.
Effect of derivative instruments on the Consolidated Statement of Operations and Comprehensive Income
The following tables present the effect of derivative instruments on our Consolidated Statement of Operations and Comprehensive Income (Loss) for the years ended December 31, 2019, 2018, and 2017. The tables include the amount of gains or losses on outstanding derivative instruments recognized in OCI in cash flow hedging relationships and the location and amount of gains or losses reclassified from AOCI into income resulting from outstanding derivative instruments.

 
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)
 
Location of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)
 
Amount of Gain or (Loss) Reclassified from AOCI into Income (Effective Portion)
 
2019
 
2018
 
2017
 
 
 
2019
 
2018
 
2017
Derivatives in cash flow hedging relationships:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts – consolidated subsidiaries
$
(13,239
)

$
(2,636
)
 
$
3,994

 
Interest Expense
 
$
(628
)

$
1,133

 
$
(2,879
)
Interest rate contracts – UJVs
(1,757
)

943

 
2,898

 
Equity in Income of UJVs
 
355


(188
)
 
(2,406
)
Cross-currency interest rate contract – UJV
28


(154
)
 
201

 
Equity in Income of UJVs
 
1,203


864

 
(2,279
)
Total derivatives in cash flow hedging relationships
$
(14,968
)

$
(1,847
)
 
$
7,093

 
 
 
$
930


$
1,809

 
$
(7,564
)
Location and fair value of derivative instruments as reported in the Consolidated Balance Sheet
We record all derivative instruments at fair value on the Consolidated Balance Sheet. The following table presents the location and fair value of our derivative financial instruments as reported on the Consolidated Balance Sheet as of December 31, 2019 and 2018.
 
 
 
Fair Value
 
Consolidated Balance Sheet Location
 
December 31 2019
 
December 31
2018
Derivatives designated as hedging instruments:
 
 
 
 
 
Asset derivatives:
 
 
 
 
 
Interest rate contracts – consolidated subsidiaries
Deferred Charges and Other Assets
 


 
$
3,530

Interest rate contract – UJV
Investment in UJVs
 

 
1,345

Total assets designated as hedging instruments


$
—


$
4,875

 
 
 
 
 
 
Liability derivatives:
 

 


 

Interest rate contracts – consolidated subsidiary
Accounts Payable and Accrued Liabilities

$
(15,419
)

$
(5,710
)
Interest rate contract – UJV
Investment in UJVs

(412
)



Cross-currency interest rate contract - UJV
Investment in UJVs

(91
)

(963
)
Total liabilities designated as hedging instruments
 

$
(15,922
)

$
(6,673
)