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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2014 (dollars and GBP in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedge

 

Rate/Buy

 

Floating/Exchange

 

Notional/

 

 

 

Date Entered

    

Maturity Date

    

Designation

    

Amount

    

Rate Index

    

Sell Amount

    

Fair Value(1)

 

July 2005(2) 

 

July 2020

 

Cash Flow

 

 
3.82 

%

BMA Swap Index

 

$
45,600 

 

$
(5,635)

 

November 2008(3) 

 

October 2016

 

Cash Flow

 

 
5.95 

%

1 Month LIBOR+1.50%

 

$
26,000 

 

$
(1,945)

 

July 2012(3)

 

June 2016

 

Cash Flow

 

 
1.81 

%

1 Month GBP LIBOR+1.20%

 

£
137,000 

 

$
1,447 

 

July 2012(4)

 

June 2016

 

Cash Flow

 

$
45,500 

 

Buy USD/Sell GBP

 

£
29,000 

 

$
(1,337)

 

July 2014(5)

 

December 2015

 

Cash Flow

 

$
9,300 

 

Buy USD/Sell GBP

 

£
5,500 

 

$
484 

 

(1)  Derivative assets are recorded in other assets, net and derivative liabilities are recorded in accounts payable and accrued liabilities on the condensed 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

July 2005

 

July 2020

 

$
1,128 

 

$
(1,337)

 

$
2,361 

 

$
(2,570)

 

November 2008

 

October 2016

 

 
267 

 

 
(253)

 

 
527 

 

 
(512)

 

July 2012

 

June 2016

 

 
1,900 

 

 
(1,865)

 

 
3,783 

 

 
(3,748)

 

July 2012

 

June 2016

 

 
(399)

 

 
71 

 

 
(633)

 

 
306 

 

July 2014

 

December 2015

 

 
(65)

 

 
23 

 

 
(110)

 

 
67