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Derivatives | 3 Months Ended
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Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | DerivativesThe Company enters into derivatives in order to hedge interest rate risk. The Company had six interest rate swaps with aggregate notional amounts of $839.5 million as of March 31, 2019 and December 31, 2018. These derivatives were designated as effective cash flow hedges for accounting purposes. The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. The Company’s derivatives are classified as Level 2 and their fair values are derived from estimated values obtained from observable market data for similar instruments. The fair market value of derivatives is presented on a gross basis on the Consolidated Balance Sheets. The following table summarizes the Company’s derivative instruments as of March 31, 2019 and December 31, 2018:
|  |  |  |  |  |  |  |  |  | Interest Rate Range(1) |  |  |  | Fair Value Asset |  |
Underlying Debt Instrument |  | Number of Hedges |  | Notional Amount |  | Effective Date |  | Maturity Date |  | Low |  | High |  | March 31, 2019 |  | December 31, 2018
Met Park North |  | 1 |  | $ | 64,500 |  | August 2013 |  | August 2020 |  | 3.71% |  |  | 3.71% |  |  | $ | 141 |  | $ | 350
Term loan A(2) |  | 2 |  | 300,000 |  | July 2016 |  | April 2020 |  | 2.65% |  |  | 3.06% |  |  | 2,813 |  | 4,038
Term loan B(2) |  | 2 |  | 350,000 |  | April 2015 |  | April 2022 |  | 2.96% |  |  | 3.46% |  |  | 4,264 |  | 7,543
Term loan D(2) |  | 1 |  | 125,000 |  | June 2016 |  | November 2022 |  | 2.63% |  |  | 3.13% |  |  | 3,245 |  | 4,756
TOTAL |  | 6 |  | $ | 839,500 |  |  |  |  |  |  |  |  |  | $ | 10,463 |  | $ | 16,687
_____________ 1.The rate is based on the fixed rate from the swap and the spread based on the operating partnership’s leverage ratio. 2.Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of March 31, 2019, which may be different than the interest rates in prior periods for corresponding indebtedness. In January 2019, the Company entered into a forward interest rate swap designated hedge. In February 2019, it was terminated, which resulted in a cash payment of approximately $1.6 million that was recorded in accumulated other comprehensive (loss) income on the Consolidated Balance Sheets and will be recognized over the life of the 4.65% registered senior notes entered into in February 2019 as an adjustment to interest expense. The cash payment is included in the payment of loan costs paid line item of the Consolidated Statements of Cash Flows. On January 1, 2018, the Company early adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). As a result of the adoption, the Company is no longer recognizing unrealized gains or losses related to ineffective portions of its derivatives. In 2018, the Company recognized a $231 thousand cumulative-effect adjustment to other comprehensive income, with a corresponding adjustment to the opening balance of retained earnings (accumulated deficit). The Company reclassifies into earnings in the same period during which the hedged forecasted transaction affects earnings. As of March 31, 2019, the Company expects $6.5 million of unrealized gain included in accumulated other comprehensive income will be reclassified as a reduction to interest expense in the next 12 months.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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