Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments

v3.19.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2019
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
 
June 30, 2019
 
December 31, 2018
Assets (Liabilities)(1):
 
 
 
 
 
 
 
 
 
 
 
 
 
April 13, 2016
 
January 1, 2021
 
175,000

 
1
 month LIBOR
 
1.03
%
 
$
1,842

 
$
4,948

March 1, 2018
 
January 31, 2021
 
40,000

 
1
 month LIBOR
 
2.47
%
 
(475
)
 
(6
)
August 14, 2018
 
January 1, 2021
 
150,000

 
1
 month LIBOR
 
2.20
%
 
(1,054
)
 
807

July, 1, 2019 (2)
 
February 1, 2024
 
25,000

 
1
 month LIBOR
 
1.75
%
 
(129
)
 
—

Total
 
 
 
$
390,000

 
 
 
 
 
 
$
184

 
$
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. 
(2)
In June 2019, we entered into a $25.0 million forward starting interest rate swap agreement, effective July 1, 2019. 

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 June 30,
 
Six months ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Interest Rate Swaps:
 

 

 
 
 
 
Amount of gain (loss) recognized in Other comprehensive income on derivative
 
$
(3,613
)
 
$
844

 
$
(5,565
)
 
$
3,583