Hedging Activities

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Hedging Activities

9. HEDGING ACTIVITIES

Periodically, we have entered into interest rate swap contracts to hedge the cash flows from our variable rate debt. These contracts effectively converted the hedged portion under our outstanding senior secured term loan facility from variable rate to fixed rate debt. The initial assessments of hedge effectiveness were performed using regression analysis. The periodic measurements of hedge ineffectiveness were performed using the change in variable cash flows method. The cash flow hedges were recorded at fair value with a corresponding entry, net of taxes, recorded in other comprehensive income until earnings were affected by the hedged item.

In June 2013, three interest rate swaps with a notional value of $500.0 million matured. The interest rate on these three interest rate swaps ranged from 1.685% to 1.6975%. We did not enter into any interest rate derivative contracts during 2014 or 2015.

The following presents, in thousands, the impact of interest rate swaps on the consolidated statements of income for 2013, in thousands:

Derivatives designated as hedging instruments	Amount of gain recognized in OCI for the year ended December 31, 2013
Interest rate swaps	$	1,786

Location of gain reclassified from OCI into net income	Amount of  gain reclassified from OCI into earnings for the year ended December 31, 2013
Interest expense	$	3,550