Quarterly report pursuant to Section 13 or 15(d)

Interest Rate Hedge Swaps (Tables)

v2.4.0.8
Interest Rate Hedge Swaps (Tables)
 9 Months Ended
Sep. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
The tables below present the effect of the Company's derivative financial instruments on the Income Statement for the three and nine months ended September 30, 2013 and August 31, 2012.
Effect of Derivative Financial Instruments on Income Statement
Derivatives in Cash Flow Hedging Relationships
 
Amount of Gain (Loss) Recognized in AOCI
on Derivative
(Effective Portion)
 
Location of
Gain (Loss) Reclassified from AOCI into Net Income (Effective Portion)
 
Amount of Gain (Loss) Reclassified from AOCI on Derivatives (Effective Portion) Recognized in Net Income *
 
Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
 
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion, Amounts Excluded from Effectiveness Testing)
 
 
 
 
 
For the three months ended:
 
September 30, 2013
 
August 31, 2012
 
 
September 30, 2013
 
August 31, 2012
 
 
September 30, 2013
 
August 31, 2012
Interest Rate Products
 
$
(397,214
)
 
$
—

 
Interest Expense
 
$
(72,757
)
 
$
—

 
Interest Expense
 
$
(1,062
)
 
$
—

For the nine months ended:
 
September 30, 2013
 
August 31, 2012
 
 
 
September 30, 2013
 
August 31, 2012
 
 
 
September 30, 2013
 
August 31, 2012
Interest Rate Products
 
$
669,674

 
$
—

 
Interest Expense
 
$
(142,750
)
 
$
—

 
Interest Expense
 
$
6,098

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedging Instruments
 
Location of
Gain (Loss) Recognized in Income on Derivative
 
Amount of Gain (Loss) Recognized in Income on Derivative *
 
 
 
 
 
 
For the Three Months Ended
 
For the Nine Months Ended
 
 
 
 
September 30, 2013
 
August 31, 2012
 
September 30, 2013
 
August 31,
2012
 
 
 
 
Interest rate contracts
 
Interest Expense
 
$
—

 
$
—

 
$
(75,200
)
 
$
—

 
 
 
 
* The gain or (loss) recognized in income on derivatives includes changes in fair value of the derivatives as
    well as the periodic cash settlements and interest accruals for derivatives not designated as hedging
    instruments

Ta
Derivative assets and liabilities at fair value
The table below presents the Company's assets and liabilities measured at fair value on a recurring basis as well as their classification on the Consolidated Balance Sheets as of September 30, 2013, aggregated by the level in the fair value hierarchy within which those measurements fall. Hedges that are valued as receivable by the Company are considered Asset Derivatives and those that are valued as payable by the Company are considered Liability Derivatives. There were no outstanding derivative financial instruments as of November 30, 2012.
Derivative Financial Instruments Measured At Fair Value on a Recurring Basis
 
 
Balance Sheet
Classification
 
 
Fair Value Hierarchy
Balance Sheet Line Item
 
 
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
September 30, 2013
Hedged derivative asset
 
Assets
 
 
$
—

 
$
516,305

 
$
—

Hedged derivative liability
 
Liabilities
 
 
$
—

 
$
—

 
$
—

Level 1 – quoted prices in active markets for identical investments
Level 2 – other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.)
Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)
Outstanding derivative and financial instruments
As of September 30, 2013, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:
Outstanding Derivatives Designated as Cash Flow Hedges of Interest Rate Risk
Interest Rate Derivative
 
Number of Instruments
 
Notional Amount Outstanding
 
 
 
 
 
Floating Rate Received
 
Fixed Rate Paid
 
 
 
Effective Date
 
Termination Date
 
 
Interest Rate Swap
 
2
 
$52,500,000
 
February 5, 2013
 
December 5, 2017
 
1-month US Dollar LIBOR
 
0.865%
Derivative Financial Instruments, Liabilities, Fair Value Disclosure
The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of September 30, 2013. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Balance Sheet.
Offsetting Derivatives
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Statement of Financial Position
 
Net Amounts of Assets presented in the Statement of Financial Position
 
Gross Amounts Not
Offset in the Statement
of Financial Position
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Instruments
 
Cash Collateral Received
 
Net Amount
Offsetting Derivative Assets as of September 30, 2013
 
$
516,305

 
$
—

 
$
516,305

 
$
—

 
$
—

 
$
516,305

 
 
 
 
 
 
 
 
 
 
 
 
 
Offsetting Derivative Liabilities as of September 30, 2013
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—