Tanger Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments

Derivative Financial Instruments

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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		September 30, 2018		December 31, 2017
Assets (Liabilities)⁽¹⁾:
November 14, 2013	August 14, 2018	$	150,000	1 month LIBOR	1.30	%	$	—	$	326
April 13, 2016	January 1, 2021	175,000		1 month LIBOR	1.03	%	6,988		5,207
March 1, 2018	January 31, 2021	40,000		1 month LIBOR	2.47	%	335		—
August 14, 2018	January 1, 2021	150,000		1 month LIBOR	2.20	%	2,117		(188		)
Total		$	515,000				$	9,440	$	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 and nine months ended September 30, 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 September 30,				Nine months ended September 30,
	2018		2017		2018		2017
Interest Rate Swaps (Effective Portion):
Amount of gain recognized in OCI on derivative	$	512	$	39	$	4,095	$	217