Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of June 30, 2018, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:



	Number of	At Inception	At June 30, 2018
Interest Rate Derivative	Instruments	Notional	Notional
Interest rate swaps	1	$45,000,000	$33,750,000
Interest rate caps	1	$15,000,000	$15,000,000

As of June 30, 2018, the Company had the following outstanding foreign currency derivatives that were used to hedge its foreign exchange risks:

Fair value of derivatives and classification on Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet as of June 30, 2018 and December 31, 2017.



		Fair Value of Derivative Instruments
		Asset Derivatives				Liability Derivatives
		June 30, 2018		December 31, 2017		June 30, 2018			December 31, 2017
Derivatives Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Fair Value		Fair Value			Fair Value
Interest rate products	Prepaid expenses and other current assets/Accrued liabilities	$	161,659	$	243	$	—		$	(71,915	)
Interest rate products	Other assets	225,848		84,058		—			—
Cross currency contract	Prepaid expenses and other current assets	709,716		655,305		—			—
Cross currency contract	Long-term derivative liability	—		—		(2,126,536		)	(2,995,657		)
Total derivatives designated as hedging instruments		$	1,097,223	$	739,606	$	(2,126,536	)	$	(3,067,572	)

Effect of cash flow hedge accounting on accumulated other comprehensive income

The tables below presents the effect of cash flow hedge accounting on accumulated other comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017.



Derivatives in Subtopic 815-20 Hedging Relationships	Amount of Gain (Loss) Recognized in OCI on Derivatives
	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Derivatives in Cash Flow Hedging Relationships
Interest rate products	$	95,236	$	—	$	363,785	$	—
Cross currency contract	2,597,045		—		1,149,474		—
Total	$	2,692,281	$	—	$	1,513,259	$	—



Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018			2017
Interest expense	$	17,297	$	—	$	(20,982	)	$	—
Interest expense	218,805		—		438,305			—
Gain (loss) on foreign currency transactions	2,428,813		—		1,145,146			—
Total	$	2,664,915	$	—	$	1,562,469		$	—

Effect of derivatives on Income Statement

The table below presents the effect of the Company’s derivative financial instruments on the income statement for the three and six months ended June 30, 2018 and 2017.



	Three Months Ended June 30,					Six Months Ended June 30,
	2018					2018
	Interest Expense			Foreign Currency Adjustment		Interest Expense			Foreign Currency Adjustment
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded	$	(671,294	)	$	4,216	$	(1,278,980	)	$	107,259
Gain (loss) on cash flow hedging relationships in Subtopic 815-20
Interest contracts
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income	$	236,103		$	2,428,813	$	417,324		$	1,145,146
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income as a result that a forecasted transaction is no longer probable of occurring	$	—		$	—	$	—		$	—



	Three Months Ended June 30,						Six Months Ended June 30,
	2017						2017
	Interest Expense			Foreign Currency Adjustment			Interest Expense			Foreign Currency Adjustment
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded	$	(175,254	)	$	(9,229	)	$	(177,586	)	$	(11,429	)
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20
Interest contracts
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	$	—		$	—		$	—		$	—
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring	$	—		$	—		$	—		$	—

Foreign Currency Derivative

Number of Instruments

Pay Fixed Notional

Receive Fixed Notional

Cross-currency interest rate swap

€42,000,517

$48,750,000

(amortizing to €39,415,870 as of June 30, 2018)

(amortizing to $45,750,000 as of June 30, 2018)