Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities:

As of December 31, 2016 and 2015, the Company had one interest rate swap that was designated as a cash flow hedge of interest payments from its inception. The fair value of the Company’s derivative financial instruments is included in other liabilities in the accompanying consolidated balance sheets as of December 31, 2016 and 2015.

The following table summarizes the terms and fair values of the Company’s derivative financial instrument (in thousands):

						Fair Value Liability
Notional Amount		Strike (1)	Credit Spread (1)	Trade Date	Maturity Date	December 31,
						2016			2015
$	7,648	3.6%	3.3%	9/28/2009	9/1/2019	$	(416	)	$	(618	)

FOOTNOTE:

(1)The strike rate does not include the credit spread on the notional amount.

The following table summarizes the gross and net amounts of the Company’s derivative financial instrument (in thousands):

		As of December 31, 2016
Notional Amount of Cash Flow Hedges		Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities Presented in the Balance Sheet			Gross Amounts Not Offset in the Balance Sheets
										Financial Instruments			Cash Collateral		Net Amount
$	7,648	$	(416	)	$	—	$	(416	)	$	(416	)	$	—	$	(416	)

		As of December 31, 2015
Notional Amount of Cash Flow Hedges		Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities Presented in the Balance Sheet			Gross Amounts Not Offset in the Balance Sheets
										Financial Instruments			Cash Collateral		Net Amount
$	8,037	$	(618	)	$	—	$	(618	)	$	(618	)	$	—	$	(618	)

9. Derivative Instruments and Hedging Activities(continued):

As of December 31, 2016, the Company’s hedge qualified as highly effective and, accordingly, all of the change in value is reflected in other comprehensive income (loss). Determining fair value and testing effectiveness of these financial instruments requires management to make certain estimates and judgments. Changes in assumptions could have a positive or negative impact on the estimated fair values and measured effectiveness of such instruments could, in turn, impact the Company’s results of operations.