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Derivative Instruments and Hedging
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Derivative Instruments and HedgingInterest Rate Derivatives—We are exposed to risks arising from our business operations, economic conditions and financial markets. To manage these risks, we primarily use interest rate derivatives to hedge our debt and our cash flows. The interest rate derivatives currently include interest rate caps and interest rate floors. These derivatives are subject to master netting settlement arrangements. To mitigate the nonperformance risk, we routinely use a third-party’s analysis of the creditworthiness of the counterparties, which supports our belief that the counterparties’ nonperformance risk is limited. All derivatives are recorded at fair value.
The following table presents a summary of our interest rate derivatives entered into over each applicable period:
Year Ended December 31,
202120202019
Interest rate caps:
Notional amount (in thousands)$3,415,301 
(1)
$457,000 
(1)
$1,051,050 
(1)
Strike rate low end of range2.00 %3.00 %1.50 %
Strike rate high end of range4.00 %4.00 %4.88 %
Effective date rangeJanuary 2021 - October 2021January 2020 - September 2020January 2019 - November 2019
Termination date rangeFebruary 2022 - November 2024February 2021 - February 2022June 2020 - February 2022
Total cost (in thousands)$1,158 $83 $1,112 
Interest rate floors:
Notional amount (in thousands)$— $— $6,000,000 
(1)
Strike rate low end of range1.63 %
Strike rate high end of range1.63 %
Effective date rangeJanuary 2019
Termination date rangeMarch 2020
Total cost (in thousands)$— $— $225 
_______________
(1)These instruments were not designated as cash flow hedges.
We held interest rate instruments as summarized in the table below:
December 31, 2021December 31, 2020
Interest rate caps:
Notional amount (in thousands)$3,597,301 
(1)
$842,000 
(1)
Strike rate low end of range2.00 %3.00 %
Strike rate high end of range4.00 %4.00 %
Termination date rangeFebruary 2022 - November 2024February 2021 - February 2022
Aggregate principal balance on corresponding mortgage loans (in thousands)$3,438,714 $697,000 
Interest rate floors: (2)
Notional amount (in thousands)$— $25,000 
(1)
Strike rate low end of range1.25 %
Strike rate high end of range1.25 %
Termination date rangeNovember 2021
_______________
(1)These instruments were not designated as cash flow hedges.
(2)Cash collateral is posted by us as well as our counterparties. We offset the fair value of the derivative and the obligation/right to return/reclaim cash collateral.
Compound Embedded Debt Derivative—Based on certain provisions in the Oaktree Credit Agreement, the Company is required to pay an exit fee, as described in note 7. Under the applicable accounting guidance, the exit fee is considered an embedded derivative liability that meets the criteria for bifurcation from the debt host. There were other features that were bifurcated, but did not have a material value. The embedded debt derivative was initially measured at fair value and the fair value of the embedded debt derivative is estimated at each reporting period. See note 10.