Annual report pursuant to Section 13 and 15(d)

DERIVATIVES (Tables)

v2.4.1.9
DERIVATIVES (Tables)
 12 Months Ended
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of fair value of derivatives financial instruments
The table below presents the fair value of the derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2014 and 2013:

 
 
 
Fair Value
 
 
 
December 31,
 
Balance sheet location
 
2014
 
2013
Derivative Assets
 
 
 
 
 
Linked transaction at fair value
Receivables and other assets
 
$
—

 
$
43,662

 
 
 
$
—

 
$
43,662

Derivative Liabilities
 
 
 
 
 
Interest rate swaps, designated as hedges
Accounts payable, accrued expenses and other liabilities
 
$
1,963

 
$
6,203

Interest rate swaps, not designated as hedges
Accounts payable, accrued expenses and other liabilities
 
334

 
7,592

TBAs, not designated as hedges
Accounts payable, accrued expenses and other liabilities
 
2,031

 
—

 
 
 
$
4,328

 
$
13,795

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

 
Income Statement Location
 
Year Ended December 31,
Cash flow hedges
 
 
2014
 
2013
 
2012
Gain (loss) on the ineffective portion
Other income (loss)
 
$
—

 
$
—

 
$
483

Loss immediately recognized at de-designation
Gain (loss) on sale of
investments, Other income (loss)
 
—

 
—

 
(7,036
)
Deferred hedge gain (loss) reclassified from AOCI into earnings
Interest expense
 
27

 
(99
)
 
1,249

Amount of loss reclassified from AOCI into income (effective portion)
Interest expense
 
(4,379
)
 
(6,128
)
 
(30,631
)
Amount of unrealized gain (loss) recognized in OCI on derivatives (effective portion)
None
 
(177
)
 
(195
)
 
(11,825
)
 
 
 
 
 
 
 
 
Non-hedge derivatives
 
 
 
 
 
 
 
Gain recognized related to interest rate swaps
Other income
 
7,131

 
10,577

 
9,101

Gain recognized related to linked transactions
Other income
 
12,498

 
1,168

 
—

Gain (loss) recognized related to linked transactions
Interest expense
 
(211
)
 
(236
)
 
—

Gain (loss) recognized related to TBAs
Other income (loss)
 
(2,030
)
 
—

 
—
Schedule of additional information about cash flow hedges
The following table presents additional information about cash flow hedge transactions:

 
December 31,
 
2014
 
2013
Cash flow hedges
 
 
 
Expected reclassification of deferred hedges from accumulated other comprehensive income (“AOCI”) into earnings over the next 12 months
$
78

 
$
53

Expected reclassification of current hedges from AOCI into earnings over the next 12 months
(1,730
)
 
(3,915
)
Schedule of gross and net information about linked transactions
The following table presents both gross and net information about linked transactions:

 
As of December 31,
 
2014
 
2013
Real estate securities-available for sale (A)
$
—

 
$
104,308

Repurchase agreements (B)
—

 
(60,646
)
Net assets recognized as linked transactions
$
—

 
$
43,662


(A)
Represents the fair value of the securities accounted for as part of linked transactions.
(B)
Represents the carrying value, which approximates fair value, of the repurchase agreements accounted for as part of linked transactions.