XML 43 R23.htm IDEA: XBRL DOCUMENT v3.24.0.1
Derivatives
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company enters into derivatives in order to hedge interest rate risk. Derivative assets are recorded in prepaid expenses and other assets and derivative liabilities are recorded in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets.

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 December 31, 2023 and December 31, 2022:
Fair Value Assets (Liabilities)
Underlying Debt InstrumentType of InstrumentAccounting PolicyNotional AmountEffective DateMaturity DateInterest RateDecember 31, 2023December 31, 2022
Hollywood Media PortfolioCapCash flow hedge$1,100,000 August 2021August 20233.50%$— $9,292 
1918 EighthSwapCash flow hedge$172,865 February 2023October 20253.75%1,075 — 
1918 EighthCap
Partial cash flow hedge(1)
$314,300 June 2023December 20255.00%952 — 
1918 Eighth
Sold cap(2)
Mark-to-market$172,865 June 2023December 20255.00%(520)— 
Hollywood Media PortfolioCap
Partial cash flow hedge(1)
$1,100,000 August 2023August 20245.70%59 — 
Hollywood Media Portfolio
Sold cap(2)
Mark-to-market$561,000 August 2023August 20245.70%(29)— 
Hollywood Media PortfolioSwapCash flow hedge$351,186 August 2023June 20263.31%4,355 — 
TOTAL$5,892 $9,292 
_____________ 
1.$141,435 and $539,000 of the notional amounts of the 1918 Eighth and Hollywood Media Portfolio caps, respectively, have been designated as effective cash flow hedges for accounting purposes. The remainder of each is accounted for under mark-to-market accounting.
2.The sold caps serve to offset the changes in fair value of the portions of the 1918 Eighth and Hollywood Media Portfolio caps that are not designated as cash flow hedges for accounting purposes.

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 December 31, 2023, the Company expects $5.1 million of unrealized gain included in accumulated other comprehensive loss will be reclassified as a reduction to interest expense in the next 12 months.