Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

14. SUBSEQUENT EVENTS

On July 26, 2016, the Company entered into two interest rate swaps, a 1-month LIBOR swap and a 3-month LIBOR swap, both with a beginning notional value of $275.0 million and maturity date of July 17, 2021.  The 1-month LIBOR swap is effective July 29, 2016, with no amortization or variable interest rate floor.  The 3-month LIBOR swap is effective June 30, 2017, with 1% amortization per year and a 75 basis points LIBOR floor.

As required under ASC 815, Derivatives and Hedging, we will record the interest rate swaps on the balance sheet at fair value.  The interest rate swaps are considered cash flow hedges. We have elected to apply hedge accounting and believe the designated hedging relationship and terms of the interest rate swaps have satisfied the criteria necessary to apply hedge accounting.

The effective portion of changes in the fair value of the interest rate swaps will be recorded in Accumulated Other Comprehensive Loss and will be subsequently reclassified into earnings in the period that the hedged transactions affect earnings. The ineffective portion of the change in fair value of the interest rate swaps, if any, will be recognized in earnings.