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

3 Months Ended

Mar. 31, 2019

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		March 31, 2019			December 31, 2018
Assets (Liabilities)⁽¹⁾:
April 13, 2016	January 1, 2021	175,000		1 month LIBOR	1.03	%	$	3,773		$	4,948
March 1, 2018	January 31, 2021	40,000		1 month LIBOR	2.47	%	(156		)	(6		)
August 14, 2018	January 1, 2021	150,000		1 month LIBOR	2.20	%	180			807
Total		$	365,000				$	3,797		$	5,749


(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.

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 following table represents the effect of the derivative financial instruments on the accompanying consolidated financial statements (in thousands):



	Three months ended March 31,
	2019			2018
Interest Rate Swaps (Effective Portion):
Amount of gain (loss) recognized in OCI on derivative	$	(1,952	)	$	2,739