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Derivatives and Hedging Activity (UNITED DOMINION REALTY, L.P.) (Tables)

6 Months Ended

Jun. 30, 2015

As of June 30, 2015, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):

Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in no adjustment to earnings for the three and six months ended June 30, 2015 and 2014.

As of June 30, 2015, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):

Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014 (dollars in thousands):



	Asset Derivatives (included in Other assets)				Liability Derivatives (included in Other liabilities)
	Fair Value at:				Fair Value at:
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
Derivatives designated as hedging instruments:
Interest rate products	$	9	86		$	9,109	$	10,368
Derivatives not designated as hedging instruments:
Interest rate products	$	3	$	2	$	—	$	—

Effect of Company's derivative financial instruments on Consolidated Statements of Operation

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014 (dollars in thousands):



Derivatives in Cash Flow Hedging Relationships	Unrealized holding gain/(loss) Recognized in OCI (Effective Portion)					Gain/(Loss) Reclassified from Accumulated OCI into Interest expense (Effective Portion)						Gain/(Loss) Recognized in Interest expense (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivatives in Cash Flow Hedging Relationships	2015			2014		2015			2014			2015		2014
Three Months Ended June 30,
Interest rate products	$	6,186		$	304	$	(292	)	$	(1,145	)	$	—	$	3

Six Months Ended June 30,
Interest rate products	$	(1,366	)	$	249	$	(1,029	)	$	(2,677	)	$	—	$	3

Effect of Company's derivatives not designated as hedging instruments on the Consolidated Statements of Operations



	Gain/(Loss) Recognized in Interest income and other income/(expense), net
Derivatives Not Designated as Hedging Instruments	2015			2014
Three Months Ended June 30,
Interest rate products	$	(22	)	$	—

Six Months Ended June 30,
Interest rate products	$	(24	)	$	—

Offsetting Assets [Table Text Block]



Offsetting of Derivative Assets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets (a)		Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments			Cash Collateral Received		Net Amount
June 30, 2015	$	12	$	—	$	12	$	—		$	—	$	12

December 31, 2014	$	88	$	—	$	88	$	(27	)	$	—	$	61

(a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet” located in this footnote.

Offsetting Liabilities [Table Text Block]



Offsetting of Derivative Liabilities
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Consolidated Balance Sheets (b)		Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments			Cash Collateral Posted		Net Amount
June 30, 2015	$	9,109	$	—	$	9,109	$	—		$	—	$	9,109

December 31, 2014	$	10,368	$	—	$	10,368	$	(27	)	$	—	$	10,341

(b) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet” located in this footnote.

United Dominion Reality L.P. [Member]

Entity Information [Line Items]

Outstanding interest rate derivatives

As of June 30, 2015, the Operating Partnership had the following outstanding interest rate derivatives designated as cash flow hedges of interest rate risk (dollars in thousands):

Derivatives not designated as hedges are not speculative and are used to manage the Operating Partnership’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements of GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and resulted in no adjustment to earnings for the three and six months ended June 30, 2015 and 2014.

As of June 30, 2015, we had the following outstanding derivatives that were not designated as a hedges in a qualifying hedging relationships (dollars in thousands):

As of June 30, 2015, the Operating Partnership had the following outstanding interest rate derivatives designated as cash flow hedges of interest rate risk (dollars in thousands):

As of June 30, 2015, we had the following outstanding derivatives that were not designated as a hedges in a qualifying hedging relationships (dollars in thousands):

Fair value of Company's derivative financial instruments and their classification on Consolidated Balance Sheet

The table below presents the fair value of the Operating Partnership’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014 (dollars in thousands):



	Asset Derivatives (included in Other assets)				Liability Derivatives (included in Other liabilities)
	Fair Value at:				Fair Value at:
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
Derivatives designated as hedging instruments:
Interest rate products	$	4	$	37	$	436	$	918

Derivatives not designated as hedging instruments:
Interest rate products	$	3	$	2	$	—	$	—

Effect of Company's derivative financial instruments on Consolidated Statements of Operation

The tables below present the effect of the derivative financial instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014 (dollars in thousands):



	Unrealized holding gain/(loss) Recognized in OCI (Effective Portion)						Gain/(Loss) Reclassified from Accumulated OCI into Interest expense (Effective Portion)
Derivatives in Cash Flow Hedging Relationships	2015			2014			2015			2014
Three Months Ended June 30,
Interest rate products	$	(26	)	$	(140	)	$	(267	)	$	(573	)

Six Months Ended June 30,
Interest rate products	$	(77	)	$	(191	)	$	(553	)	$	(1,196	)

Effect of Company's derivatives not designated as hedging instruments on the Consolidated Statements of Operations



	Gain/(Loss) Recognized in Interest income and other income/(expense), net
Derivatives Not Designated as Hedging Instruments	2015			2014
Three Months Ended June 30,
Interest rate products	$	(22	)	$	—

Six Months Ended June 30,
Interest rate products	$	(23	)	$	—

Offsetting Assets [Table Text Block]

The General Partner has elected not to offset derivative positions in the consolidated financial statements. The table below presents the effect on the Operating Partnership’s financial position had the General Partner made the election to offset its derivative positions as of June 30, 2015 and December 31, 2014:



Offsetting of Derivative Assets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Assets Presented in the Consolidated Balance Sheets (a)		Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments		Cash Collateral Received		Net Amount
June 30, 2015	$	7	$	—	$	7	$	—	$	—	$	7

December 31, 2014	$	39	$	—	$	39	$	—	$	—	$	39

(a) Amounts reconcile to the aggregate fair value of derivative assets in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet” located in this footnote.

Offsetting Liabilities [Table Text Block]



Offsetting of Derivative Liabilities
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Consolidated Balance Sheets (b)		Gross Amounts Not Offset in the Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Consolidated Balance Sheets				Financial Instruments		Cash Collateral Posted		Net Amount
June 30, 2015	$	436	$	—	$	436	$	—	$	—	$	436

December 31, 2014	$	918	$	—	$	918	$	—	$	—	$	918

(b) Amounts reconcile to the aggregate fair value of derivative liabilities in the “Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet” located in this footnote.

Interest Rate Derivative

Number of Instruments

Interest rate swaps

Interest rate caps