Derivatives

The Company's use of derivative financial instruments has historically been limited to the utilization of interest rate swaps, interest rate caps and foreign exchange contracts. The principal objective of such financial instruments is to minimize the risks and/or costs associated with the Company's operating and financial structure and to manage its exposure to interest rates and foreign exchange rates. Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements, foreign exchange rate movements, and other identified risks, but may not meet the strict hedge accounting requirements.

The Company did not directly own any derivative financial instruments as of March 31, 2018 and December 31, 2017. The tables below present the effect of the Company's derivative financial instruments, including the Company's share of derivative financial instruments at certain of its equity method investments, in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ in thousands):



Derivatives Designated in Hedging Relationships	Location of Gain (Loss) Recognized in Income	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion)		Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion)		Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Ineffective Portion)
For the Three Months Ended March 31, 2018
Interest rate swaps	Earnings from equity method investments	2,351		(9	)	N/A
For the Three Months Ended March 31, 2017
Interest rate cap	Earnings from equity method investments	(5	)	(5	)	N/A
Interest rate swaps	Interest Expense	467		(30	)	N/A
Interest rate swap	Earnings from equity method investments	78		(87	)	N/A
Foreign exchange contracts	Earnings from equity method investments	(299	)	—		N/A



		Amount of Gain (Loss) Recognized in Income For the Three Months Ended March 31, 2017
	Location of Gain (Loss) Recognized in Income
Derivatives not Designated in Hedging Relationships	Location of Gain (Loss) Recognized in Income
Interest rate cap	Other Expense	$	47
Foreign exchange contracts	Other Expense	(125		)

During the three months ended March 31, 2017, the Company entered into and settled a rate lock swap in connection with the 2017 Secured Financing and a simultaneous rate lock swap with SAFE. As a result of the settlements, the Company initially recorded a $0.4 million unrealized gain in “Accumulated other comprehensive income” on the Company’s consolidated balance sheets and subsequently derecognized the gain when third parties acquired a controlling interest in the Company's Ground Lease business (refer to Note 4).