Annual report pursuant to Section 13 and 15(d)

DERIVATIVES

v3.6.0.2
DERIVATIVES
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES
DERIVATIVES

Drive Shack Inc.'s derivative instruments are comprised of interest rate swaps, interest rate caps and TBAs. Derivative assets with a fair value of $0.9 million and $0.1 million as of December 31, 2016 and 2015, respectively, were recorded within receivables and other assets on the Consolidated Balance Sheets. Derivative liabilities with a fair value of zero and $0.7 million as of December 31, 2016 and 2015, respectively, were recorded within accounts payable, accrued expenses and other liabilities on the Consolidated Balance Sheets.



The following table summarizes (gains) losses recorded in relation to derivatives:

 
Income Statement Location
 
Year Ended December 31,
Cash flow hedges
 
 
2016
 
2015
 
2014
Loss immediately recognized at de-designation
Realized/unrealized (gain) loss on investments
 
$
—

 
$
—

 
$
34

Loss recognized on termination of derivative instruments
Realized/unrealized (gain) loss on investments
 
—

 
612

 
—

Deferred hedge gain reclassified from AOCI into earnings
Interest expense
 
(20
)
 
(78
)
 
(61
)
Amount of loss reclassified from AOCI into income (effective portion)
Interest expense
 
—

 
1,363

 
4,379

Amount of unrealized loss recognized in Other Comprehensive Income on derivatives (effective portion)
N/A
 
—

 
60

 
177

 
 
 
 
 
 
 
 
Non-hedge derivatives
 
 
 
 
 
 
 
Unrealized gain on interest rate derivatives
Realized/unrealized (gain) loss on investments
 
$
(294
)
 
$
(284
)
 
$
(7,131
)
Gain recognized related to linked transactions
Realized/unrealized (gain) loss on investments
 
—

 
—

 
(12,498
)
Loss recognized related to linked transactions
Interest expense
 
—

 
—

 
211

Unrealized (gain) loss recognized related to TBAs
Realized/unrealized (gain) loss on investments
 
(928
)
 
(1,474
)
 
2,030

Realized (gain) loss on settlement of TBAs
Realized/unrealized (gain) loss on investments
 
(18,318
)
 
12,907

 
4,151



As of December 31, 2016 and 2015, Drive Shack Inc. had zero and less than $0.1 million, respectively, of expected reclassification of deferred hedges from AOCI into earnings over the next 12 months.