Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments

v3.19.3.a.u2
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 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 as of December 31, 2019 and 2018 (notional amounts and fair values in thousands):
 
 
 
 
 
 
 
 
 
 
 
Fair Value
Effective Date
 
Maturity Date
 
Notional Amount
 
Bank Pay Rate
 
Company Average Fixed Pay Rate
 
2019
 
2018
Assets (Liabilities)(1):
 
 
 
 
 
 
 
 
 
 
 
 
 
April 13, 2016
 
January 1, 2021
 
$
175,000

 
1
 month LIBOR
 
1.03
%
 
$
1,018

 
$
4,948

March 1, 2018
 
January 31, 2021
 
40,000

 
1
 month LIBOR
 
2.47
%
 
(376
)
 
(6
)
August 14, 2018
 
January 1, 2021
 
150,000

 
1
 month LIBOR
 
2.20
%
 
(896
)
 
807

July 1, 2019
 
February 1, 2024
 
25,000

 
1
 month LIBOR
 
1.75
%
 
(170
)
 
—

Total
 
 
 
$
390,000

 
 
 
 
 
 
$
(424
)
 
$
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 for the years ended December 31, 2019, 2018 and 2017, respectively (in thousands):
 
 
 
 
 
 
 
 
2019
 
2018
 
2017
Interest Rate Swaps (Effective Portion):
 
 
 
 
 
 
Amount of gain (loss) recognized in OCI
 
$
(6,174
)
 
$
405

 
$
1,351