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Derivatives
 6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives DERIVATIVES
The Company’s objective in using interest rate derivatives is to manage its exposure to interest rate movements and add stability to interest expense. To accomplish this objective, the Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed rate payments over the life of the agreement without exchange of the underlying notional amount.
As of June 30, 2020, the Company has 11 interest rate swaps to hedge the variable cash flows associated with variable rate debt. Changes in fair value of the derivatives that are designated and that qualify as cash flow hedges are recorded in “Accumulated other comprehensive loss” and are reclassified into interest expense as interest payments are made on the Company’s variable rate debt. Over the next 12 months, the Company estimates that an additional $12,013 will be reclassified as an increase to interest expense.
The following table summarizes the Company’s interest rate swaps as of June 30, 2020, which effectively convert one-month floating rate LIBOR to a fixed rate:
Number of Instruments
 
Effective Date
 
Aggregate
Notional
 
Fixed
Interest Rate
 
Maturity Date
Three
 
December 29, 2017
 
$
250,000

 
2.00
%
 
January 5, 2021
Two
 
November 23, 2018
 
$
200,000

 
2.85
%
 
November 22, 2023
Three
 
August 15, 2019
 
$
120,000

 
1.68
%
 
July 17, 2024
Three
 
August 15, 2019
 
$
150,000

 
1.77
%
 
July 17, 2026

The following table summarizes the Company’s interest rate swaps that were designated as cash flow hedges of interest rate risk:
 
 
Number of Instruments
 
Notional
Interest Rate Derivatives
 
June 30, 2020
 
December 31, 2019
 
June 30, 2020
 
December 31, 2019
Interest rate swaps
 
11

 
11

 
$
720,000

 
$
720,000


The table below presents the estimated fair value of the Company’s derivative financial instruments, which are presented within “Other liabilities” in the accompanying condensed consolidated balance sheets. The valuation techniques used are described in Note 12 to the condensed consolidated financial statements.
 
 
Fair Value
 
 
June 30, 2020
 
December 31, 2019
Derivatives designated as cash flow hedges:
 
 
 
 
Interest rate swaps
 
$
39,176

 
$
12,288


The following table presents the effect of the Company’s derivative financial instruments on the accompanying condensed consolidated statements of operations and other comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019:
Derivatives in
Cash Flow
Hedging
Relationships
 
Amount of Loss
Recognized in Other
Comprehensive Income
on Derivative
 
Location of Loss (Gain)
Reclassified from
Accumulated Other
Comprehensive Income
(AOCI) into Income
 
Amount of Loss (Gain)
Reclassified from
AOCI into Income
 
Total Interest Expense
Presented in the Statements
of Operations in which
the Effects of Cash Flow
Hedges are Recorded
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
2020
 
$
2,301

 
$
30,954

 
Interest expense
 
$
2,995

 
$
4,066

 
$
19,360

 
$
36,406

2019
 
$
6,215

 
$
9,601

 
 
 
$
(92
)
 
$
(220
)
 
$
17,363

 
$
34,793