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Derivatives
 6 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company enters into derivatives in order to hedge interest rate risk.

The Company had three interest rate swaps with aggregate notional amounts of $475.0 million as of June 30, 2021 and December 31, 2020. These derivatives were designated as effective cash flow hedges for accounting purposes.
The Company had one interest rate cap contract with an aggregate notional amount of $900.0 million as of June 30, 2021 and December 31, 2020. The interest rate cap is not designated under hedge accounting and is accounted for under mark-to-market accounting.

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 June 30, 2021 and December 31, 2020:
Interest Rate Range(1)
Fair Value (Liabilities) Assets
Underlying Debt InstrumentNumber of DerivativesNotional AmountEffective DateMaturity DateLowHighJune 30, 2021December 31, 2020
Interest rate swaps
Hollywood Media Portfolio(2)
2$350,000 April 2015April 20222.96%3.46%(4,341)(7,112)
Hollywood Media Portfolio(2)
1125,000 June 2016November 20222.63%3.13%(2,191)(2,994)
Interest rate capStrike rate
Hollywood Media Portfolio1$900,000 July 2020August 20223.50%$5 $5 
TOTAL$(6,527)$(10,101)
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1.The rate is based on the fixed rate from the swap and the spread based on the operating partnership’s leverage ratio.
2.The swaps were designated under the first payments approach within hedge accounting, where the Company elected to designate a cash flow (LIBOR-based interest payments) instead of a specific piece of debt.

The Company reclassifies unrealized gains and losses related to cash flow hedges into earnings in the same period during which the hedged forecasted transaction affects earnings. As of June 30, 2021, the Company expects $6.0 million of unrealized loss included in accumulated other comprehensive loss will be reclassified as an increase to interest expense in the next 12 months.