Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments

v3.8.0.1
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments

The following table summarizes the terms and fair values of our derivative financial instruments, as well as their classifications within the consolidated balance sheets (notional amounts and fair values in thousands):

 
 
 
 
 
 
 
 
 
 
Fair Value
Effective Date
 
Maturity Date
 
Notional Amount
 
Bank Pay Rate
 
Company Fixed Pay Rate
 
March 31, 2018
 
December 31, 2017
Assets (Liabilities)(1):
 
 
 
 
 
 
 
 
 
 
 
 
November 14, 2013
 
August 14, 2018
 
$
150,000

 
1 month LIBOR
 
1.30
%
 
$
369

 
$
326

April 13, 2016
 
January 1, 2021
 
175,000

 
1 month LIBOR
 
1.03
%
 
6,636

 
5,207

March 1, 2018
 
January 31, 2021
 
40,000

 
1 month LIBOR
 
2.47
%
 
(32
)
 

August 14, 2018
 
January 1, 2021
 
150,000

 
1 month LIBOR
 
2.20
%
 
1,111

 
(188
)
Total
 
 
 
$
515,000

 
 
 
 
 
$
8,084

 
$
5,345


(1)
Asset balances are recorded in prepaids and other assets on the consolidated balance sheets and liabilities are recorded in other liabilities on the consolidated balance sheets.


The derivative financial instruments are comprised of interest rate swaps, which are designated and qualify as cash flow hedges, each with a separate counterparty. We do not use derivatives for trading or speculative purposes and currently do not have any derivatives that are not designated as hedges.

The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive loss and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivative, if significant, is recognized directly in earnings. For the three months ended March 31, 2018 and 2017, the ineffective portion was not significant.

The following table represents the effect of the derivative financial instruments on the accompanying consolidated financial statements (in thousands):
 
 
Three months ended March 31,
 
 
2018
 
2017
Interest Rate Swaps (Effective Portion):
 

 

Amount of gain recognized in OCI on derivative
 
$
2,739

 
$
722