INTEREST RATE SWAP

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

INTEREST RATE SWAP

4.             INTEREST RATE SWAP

As of September 30, 2014 and December 31, 2013, the fair value of our interest rate swap was $0.7 million and $0.8 million, respectively, and was included in “Other long-term liabilities” in the accompanying consolidated balance sheets. During the three and nine months ended September 30, 2014, we recorded a gain of $0.3 million and $0.1 million, respectively, as the effective portion of the change in fair value of our interest rate swap, designated and qualified as a cash flow hedge, in “Other comprehensive loss” in the accompanying consolidated statements of operations and comprehensive loss. During each of the three and nine months ended September 30, 2013, we recorded losses of $0.2 million as the effective portion of the change in fair value of our interest rate swap. We did not recognize any hedge ineffectiveness during the three and nine months ended September 30, 2014 and 2013.

During the three and nine months ended September 30, 2014, we reclassified $0.2 million and $0.6 million, respectively, as an increase to interest expense. Through September 30, 2015, we estimate that we will reclassify an additional $0.8 million to interest expense since the hedge interest rate currently exceeds the variable interest rate on our debt. During each of the three and nine months ended September 30, 2013, we reclassified less than $0.1 million as an increase to interest expense.