XML 30 R14.htm IDEA: XBRL DOCUMENT v3.25.0.1
Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities:
The Company uses interest rate cap agreements to manage the interest rate risk on certain floating rate debt. The Company recorded other comprehensive income (loss) related to the marking-to-market of derivative instruments of $918, $(1,584) and $656 during the years ended December 31, 2024, 2023 and 2022, respectively. The $918 in other comprehensive income for the year ended December 31, 2024, $1,584 in other comprehensive loss for the year ended December 31, 2023 and $632 of the $656 in other comprehensive income for the year ended December 31, 2022 is the Company's pro rata share of hedged derivative instruments from certain unconsolidated joint ventures.
The following derivatives were outstanding at December 31, 2024 and 2023:        
Fair Value
PropertyDesignationNotional AmountProductSOFR/LIBOR RateMaturity20242023
Santa Monica PlaceNon-Hedged$300,000 Cap4.00 %12/9/2024$— $2,665 
The Macerich Partnership, L.P.Non-Hedged$(300,000)Sold Cap4.00 %12/9/2024$— $(2,658)

The above derivatives were valued with an aggregate fair value (Level 2 measurement) and were included in other assets (other accrued liabilities). The fair value of the Company's interest rate derivatives were determined using discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements.
Although the Company has determined that the majority of the inputs used to value its derivatives falls within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate caps. As a result, the Company determined that its interest rate cap valuations in its entirety is classified in Level 2 of the fair value hierarchy.