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Derivatives | 9 Months Ended
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Sep. 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 September 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 $1.1 billion of September 30, 2021 and one interest rate cap contract with an aggregate notional amount of $900.0 million as of and December 31, 2020. The interest rate caps are not designated under hedge accounting and are 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 September 30, 2021 and December 31, 2020:
|  |  |  |  |  |  |  |  |  | Interest Rate Range(1) |  | Fair Value (Liabilities) Assets
Underlying Debt Instrument |  | Number of Derivatives |  | Notional Amount |  | Effective Date |  | Maturity Date |  | Low |  | High |  | September 30, 2021 |  | December 31, 2020
Interest rate swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hollywood Media Portfolio(2) |  | 2 |  | $ | 350,000 |  |  | April 2015 |  | April 2022 |  | 2.96% |  | 3.46% |  | $ | (2,922) |  |  | $ | (7,112) |
Hollywood Media Portfolio(2) |  | 1 |  | 125,000 |  |  | June 2016 |  | November 2022 |  | 2.63% |  | 3.13% |  | (1,827) |  |  | (2,994) |
Interest rate cap |  |  |  |  |  |  |  |  |  | Strike rate |  |  |  |
Hollywood Media Portfolio(3) |  | 1 |  | $ | 900,000 |  |  | July 2020 |  | Terminated August 2021 |  | 3.50% |  | $ | — |  |  | $ | 5 |
Hollywood Media Portfolio(3) |  | 1 |  | 1,100,000 |  |  | August 2021 |  | August 2023 |  | 3.50% |  | $ | 112 |  |  | — |
TOTAL |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (4,637) |  |  | $ | (10,101) |
_____________ 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. 3.The Hollywood Media Portfolio debt was refinanced during the nine months ended September 30, 2021 with the loan amount being increased to $1.1 billion. Concurrently with the refinance, the interest rate cap associated with the original $900.0 million loan was early-terminated and replaced with an interest rate cap with a notional amount of $1.1 billion and a maturity in August 2023. 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 September 30, 2021, the Company expects $4.6 million of unrealized loss included in accumulated other comprehensive loss will be reclassified as an increase 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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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