XML 45 R35.htm IDEA: XBRL DOCUMENT v3.22.2

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Summary of Derivative Liabilities Measured at Fair Value

The following table includes a summary of the compound embedded derivative liabilities measured at fair value using significant unobservable (Level 3) inputs (in thousands):

						Fair Value
Balance at January 1, 2021						$	—
Additions						43,681
Re-measurement of fair value						(1,279)
Balance at March 31, 2021						$	42,402
Re-measurement of fair value						2,676
Balance at June 30, 2021						$	45,078
Re-measurement of fair value						(6,125)
Balance at September 30, 2021						$	38,953
Re-measurement of fair value						(11,047)
Balance at December 31, 2021						$	27,906
Re-measurement of fair value						(932)
Balance at March 31, 2022						$	26,974
Re-measurement of fair value						(2,977)
Balance at June 30, 2022						$	23,997

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents our assets and liabilities measured at fair value on a recurring basis aggregated by the level within which measurements fall in the fair value hierarchy (in thousands):

			Quoted Market Prices (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)												Total
																					June 30, 2022:
																					Assets
Derivative assets:
Interest rate derivatives - caps			$	—					$	11,132					$	—											$	11,132		(1)
Total			$	—					$	11,132					$	—											$	11,132
Liabilities
Embedded debt derivative			$	—					$	—					$	(23,997)											$	(23,997)		(2)
Net			$	—					$	11,132					$	(23,997)											$	(12,865)
December 31, 2021:
Assets
Derivative assets:
Interest rate derivatives - caps			$	—					$	501					$	—											$	501		(1)
Total			$	—					$	501					$	—											$	501
Liabilities
Embedded debt derivative			$	—					$	—					$	(27,906)											$	(27,906)
Net			$	—					$	501					$	(27,906)											$	(27,405)		(2)

____________________________________

(1)    Reported net as “derivative assets” in our consolidated balance sheets.

(2)    Reported in “indebtedness, net” in our consolidated balance sheet.

Effect of Fair Value Measured Assets and Liabilities on Consolidated Statements of Operations

The following table summarizes the effect of fair value measured assets and liabilities on our consolidated statements of operations (in thousands):

			Gain (Loss) Recognized in Income
			Three Months Ended June 30,
			2022						2021
Assets
Derivative assets:
Interest rate derivatives - floors			$	—					$	(319)
Interest rate derivatives - caps			3,097						(241)
Total			3,097						(560)
Liabilities
Derivative liabilities:
Embedded debt derivative			2,977						(2,676)
Net			$	6,074					$	(3,236)
Total combined
Interest rate derivatives - floors			$	—					$	(319)
Interest rate derivatives - caps			3,097						(241)
Embedded debt derivative			2,977						(2,676)
Unrealized gain (loss) on derivatives			6,074			(1)			(3,236)			(1)
Net			$	6,074					$	(3,236)

____________________________________

(1)    Reported as “unrealized gain (loss) on derivatives” in our consolidated statements of operations.

			Gain (Loss) Recognized in Income
			Six Months Ended June 30,
			2022						2021
Assets
Derivative assets:
Interest rate derivatives - floors			$	—					$	(390)
Interest rate derivatives - caps			5,376						(530)
Total			5,376						(920)
Liabilities
Derivative liabilities:
Embedded debt derivative			3,909						(1,397)
Net			$	9,285					$	(2,317)
Total combined
Interest rate derivatives - floors			$	—					$	(390)
Interest rate derivatives - caps			5,376						(530)
Embedded debt derivative			3,909						(1,397)
Unrealized gain (loss) on derivatives			9,285			(1)			(2,317)			(1)
Net			$	9,285					$	(2,317)

____________________________________

(1)    Reported as “unrealized gain (loss) on derivatives” in our consolidated statements of operations.

X

- Definition

Tabular disclosure of the amount of gains or losses for the period included in earnings or resulted in a change to net assets, have arisen from the use of significant unobservable inputs (level 3) to measure the fair value of assets, liabilities, and financial instruments classified in shareholders' equity.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)(1)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisGainLossIncludedInEarningsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258

+ Details

Name:	us-gaap_FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

+ Details

Name:	us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration