Quarterly report pursuant to Section 13 or 15(d)

Interest Rate Hedge Swaps (Tables)

v2.4.0.6
Interest Rate Hedge Swaps (Tables)
 3 Months Ended
Mar. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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 March 31, 2013 and December 31, 2012, 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
 
 
 
 
 
March 31, 2013
Prepaid expenses and other assets
 
Assets
 
 
$
—

 
$
—

 
$
—

Accounts payable and other accrued liabilities
 
Liabilities
 
 
$
—

 
$
266,880

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
Prepaid expenses and other assets
 
Assets
 
 
$
—

 
$
—

 
$
—

Accounts payable and other accrued liabilities
 
Liabilities
 
 
$
—

 
$
316,756

 
$
—

 
 
 
 
 
 
 
 
 
 
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
The table below presents the effect of the Company's derivative financial instruments on the Income Statement for the quarters ended March 31, 2013 and February 29, 2012, and for the one-month transition period ended December 31, 2012.
Effect of Derivative Financial Instruments on Income Statement
Derivatives Not Designated as Hedging Instruments
 
Location of
Gain (Loss) Recognized in Income on Derivative
 
Amount of Gain or (Loss) Recognized in Income on Derivative *
 
 
For the Three Months Ended
 
For the One-Month Transition Period Ended
December 31, 2012
 
 
March 31, 2013
 
February 29, 2012
 
Interest rate contracts
 
Interest Expense
 
$
(3,350
)
 
$
—

 
$
(316,756
)
* 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
As of March 31, 2013, and December 31, 2012 the Company had the following outstanding derivatives, none of which were designated as hedges in qualifying hedging relationships:

Outstanding Derivatives Not Designated as Hedges in a Qualifying Hedging Relationship
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%