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Interest Rate Hedge Swaps (Tables)
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6 Months Ended |
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Jun. 30, 2013
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| 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 six months ended June 30, 2013 and May 31, 2012.
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Effect of Derivative Financial Instruments on Income Statement |
Derivatives in Cash Flow Hedging Relationships |
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Amount of Gain (Loss) Recognized in OCI
on Derivative
(Effective Portion)
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Location of
Gain (Loss) Recognized in Income on Derivative
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Amount of Gain (Loss) Recognized in Income on Derivative * |
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Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) |
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Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion, Amounts Excluded from Effectiveness Testing) |
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For the three months ended: |
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June 30, 2013 |
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May 31, 2012 |
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June 30, 2013 |
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May 31, 2012 |
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June 30, 2013 |
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May 31, 2012 |
Interest Rate Products |
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$ |
1,136,881 |
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$ |
— |
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Interest Expense |
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$ |
(69,993 |
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$ |
— |
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Interest Expense |
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$ |
7,160 |
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$ |
— |
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For the six months ended: |
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June 30, 2013 |
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May 31, 2012 |
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June 30, 2013 |
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May 31, 2012 |
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June 30, 2013 |
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May 31, 2012 |
Interest Rate Products |
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$ |
1,136,881 |
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$ |
— |
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Interest Expense |
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$ |
(69,993 |
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$ |
— |
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Interest Expense |
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$ |
7,160 |
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$ |
— |
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Derivatives Not Designated as Hedging Instruments |
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Location of
Gain (Loss) Recognized in Income on Derivative
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Amount of Gain (Loss) Recognized in Income on Derivative * |
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For the Three Months Ended |
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For the Six Months Ended |
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June 30, 2013 |
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May 31, 2012 |
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June 30, 2013 |
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May 31,
2012
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Interest rate contracts |
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Interest Expense |
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$ |
(71,850 |
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— |
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$ |
(75,200 |
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— |
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* 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
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| 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 June 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.
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Derivative Financial Instruments Measured At Fair Value on a Recurring Basis |
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Balance Sheet
Classification
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Fair Value Hierarchy |
Balance Sheet Line Item |
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Level 1 |
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Level 2 |
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Level 3 |
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June 30, 2013 |
Hedged derivative asset |
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Assets |
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$ |
— |
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$ |
823,773 |
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$ |
— |
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Accounts payable and other accrued liabilities |
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Liabilities |
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$ |
— |
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$ |
— |
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$ |
— |
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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) |
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| Outstanding derivative and financial instruments |
As of June 30, 2013, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:
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Outstanding Derivatives Designated as Cash Flow Hedges of Interest Rate Risk |
Interest Rate Derivative |
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Number of Instruments |
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Notional Amount Outstanding |
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Floating Rate Received |
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Fixed Rate Paid |
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Effective Date |
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Termination Date |
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Interest Rate Swap |
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2 |
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$52,500,000 |
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February 5, 2013 |
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December 5, 2017 |
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1-month US Dollar LIBOR |
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0.865% |
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| Derivative Financial Instruments, Liabilities, Fair Value Disclosure |
The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of June 30, 2013. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Balance Sheet.
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Offsetting Derivatives |
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Gross Amounts of Recognized Assets |
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Gross Amounts Offset in the Statement of Financial Position |
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Net Amounts of Assets presented in the Statement of Financial Position |
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Gross Amounts Not Offset in the Statement of Financial Position |
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Financial Instruments |
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Cash Collateral Received |
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Net Amount |
Offsetting Derivative Assets as of June 30, 2013 |
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$ |
823,773 |
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$ |
— |
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$ |
823,773 |
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$ |
— |
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$ |
— |
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$ |
823,773 |
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Offsetting Derivative Liabilities as of June 30, 2013 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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