Annual report pursuant to Section 13 and 15(d)

Interest Rate Hedge Swaps (Tables)

v2.4.1.9
Interest Rate Hedge Swaps (Tables)
 12 Months Ended
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative assets and liabilities at fair value
The table below presents the Company's hedged derivative asset measured at fair value on a recurring basis as well as their classification on the Consolidated Balance Sheets as of December 31, 2014 and December 31, 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.
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
 
 
 
 
 
December 31, 2014
Hedged derivative asset
 
Assets
 
 
$
—

 
$
351,807

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
Hedged derivative asset
 
Assets
 
 
$
—

 
$
680,968

 
$
—

 
 
 
 
 
 
 
 
 
 
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 December 31, 2014, 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%
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 years ended December 31, 2014, December 31, 2013, and November 30, 2012 and for the one-month transition period ended December 31, 2012.
 
For Year Ended December 31,
For Year Ended November 30, 2012
For the One-Month Transition Period Ended December 31, 2012
Derivatives in Cash Flow Hedging Relationship
2014
2013
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)1
$
(705,826
)
$
741,344

$
—

$
—

Amount of Gain (Loss) Reclassified from AOCI on Derivatives (Effective Portion) Recognized in Net Income1
(305,945
)
(217,821
)
—

—

Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion, Amounts Excluded from Effectiveness Testing)1
(897
)
5,969

—

—

 
 
 
 
 
Derivatives Not Designated as Hedging Instruments
 
 
 
 
Amount of Gain (Loss) Recognized in Income on Derivative2
$
—

$
(75,200
)
$
—

$
(316,756
)
 
 
 
 
 
(1) Included in "Interest Expense" on the face of the Income Statement
(2)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
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 December 31, 2014 and December 31, 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. There were no offsetting derivative liabilities as of December 31, 2014 and December 31, 2013.
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 December 31, 2014
 
$
351,807

 
$
—

 
$
351,807

 
$
—

 
$
—

 
$
351,807

 
 
 
 
 
 
 
 
 
 
 
 
 
Offsetting Derivative Assets as of December 31, 2013
 
$
680,968

 
$
—

 
$
680,968

 
$
—

 
$
—

 
$
680,968