Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value of Derivative Instrument Designated as Cash Flow Hedges

The fair values of derivative instruments designated as cash flow hedges as of June 30, 2018, were as follows: 

Derivatives Designated as Cash	Asset Derivatives			Liability Derivatives
Flow Hedges	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
Interest rate swaps	Prepaid expenses and other current assets(a)	$	9,208	Other long-term liabilities	$	(1,678)
	Other assets, net		24,542
Fuel hedges	Prepaid expenses and other current assets(b)		3,704
Total derivatives designated as cash flow hedges		$	37,454		$	(1,678)

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(a) Represents the estimated amount of the existing unrealized gains on interest rate swaps as of June 30, 2018 (based on the interest rate yield curve at that date), included in AOCIL expected to be reclassified into pre-tax earnings within the next 12 months.  The actual amounts reclassified into earnings are dependent on future movements in interest rates. 

(b)Represents the estimated amount of the existing unrealized gains on the fuel hedge as of June 30, 2018 (based on the forward DOE diesel fuel index curve at that date), included in AOCIL expected to be reclassified into pre-tax earnings within the next 12 months.  The actual amounts reclassified into earnings are dependent on future movements in diesel fuel prices.

The fair values of derivative instruments designated as cash flow hedges as of December 31, 2017, were as follows: 

Derivatives Designated as Cash	Asset Derivatives			Liability Derivatives
Flow Hedges	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
Interest rate swaps	Prepaid expenses and other current assets	$	5,193	Accrued liabilities	$	(903)
	Other assets, net		15,182	Other long-term liabilities		(493)
Fuel hedges	Prepaid expenses and other current assets		3,880
Total derivatives designated as cash flow hedges		$	24,255		$	(1,396)

Impact of Cash Flow Hedges on Results of Operations, Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)

The following table summarizes the impact of the Company’s cash flow hedges on the results of operations, comprehensive income (loss) and AOCIL for the three and six months ended June 30, 2018 and 2017: 

Derivatives Designated as Cash Flow Hedges	Amount of Gain or (Loss) Recognized as AOCIL on Derivatives, Net of Tax (Effective Portion)(a)				Statement of Net Income Classification	Amount of (Gain) or Loss Reclassified from AOCIL into Earnings, Net of Tax (Effective Portion) (b),(c)
	Three Months Ended June 30,					Three Months Ended June 30,
	2018		2017			2018		2017
Interest rate swaps	$	2,349	$	(4,098)	Interest expense	$	(936)	$	558
Fuel hedges		1,541		(720)	Cost of operations		(1,268)		626
Total	$	3,890	$	(4,818)		$	(2,204)	$	1,184

Derivatives Designated as Cash Flow Hedges	Amount of Gain or (Loss) Recognized as AOCIL on Derivatives, Net of Tax (Effective Portion)(a)				Statement of Net Income Classification	Amount of (Gain) or Loss Reclassified from AOCIL into Earnings, Net of Tax (Effective Portion) (b),(c)
	Six Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
Interest rate swaps	$	11,000	$	(1,379)	Interest expense	$	(1,376)	$	1,353
Fuel hedges		2,004		(2,714)	Cost of operations		(2,131)		1,222
Total	$	13,004	$	(4,093)		$	(3,507)	$	2,575

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(a)In accordance with the derivatives and hedging guidance, the effective portions of the changes in fair values of interest rate swaps and fuel hedges have been recorded in equity as a component of AOCIL.  As the critical terms of the interest rate swaps match the underlying debt being hedged, no ineffectiveness is recognized on these swaps and, therefore, all unrealized changes in fair value are recorded in AOCIL.  Because changes in the actual price of diesel fuel and changes in the DOE index price do not offset exactly each reporting period, the Company assesses whether the fuel hedges are highly effective using the cumulative dollar offset approach. 

(b)Amounts reclassified from AOCIL into earnings related to realized gains and losses on interest rate swaps are recognized when interest payments or receipts occur related to the swap contracts, which correspond to when interest payments are made on the Company’s hedged debt. 

(c)Amounts reclassified from AOCIL into earnings related to realized gains and losses on the fuel hedges are recognized when settlement payments or receipts occur related to the hedge contracts, which correspond to when the underlying fuel is consumed. 

Interest Rate Swap [Member]

Company's Derivative Instruments

At June 30, 2018, the Company’s derivative instruments included 16 interest rate swap agreements as follows: 

Date Entered	Notional Amount		Fixed Interest Rate Paid*	Variable Interest Rate Received	Effective Date	Expiration Date
April 2014	$	100,000	1.800%	1-month LIBOR	July 2014	July 2019
May 2014	$	50,000	2.344%	1-month LIBOR	October 2015	October 2020
May 2014	$	25,000	2.326%	1-month LIBOR	October 2015	October 2020
May 2014	$	50,000	2.350%	1-month LIBOR	October 2015	October 2020
May 2014	$	50,000	2.350%	1-month LIBOR	October 2015	October 2020
April 2016	$	100,000	1.000%	1-month LIBOR	February 2017	February 2020
June 2016	$	75,000	0.850%	1-month LIBOR	February 2017	February 2020
June 2016	$	150,000	0.950%	1-month LIBOR	January 2018	January 2021
June 2016	$	150,000	0.950%	1-month LIBOR	January 2018	January 2021
July 2016	$	50,000	0.900%	1-month LIBOR	January 2018	January 2021
July 2016	$	50,000	0.890%	1-month LIBOR	January 2018	January 2021
August 2017	$	100,000	1.900%	1-month LIBOR	July 2019	July 2022
August 2017	$	200,000	2.200%	1-month LIBOR	October 2020	October 2025
August 2017	$	150,000	1.950%	1-month LIBOR	February 2020	February 2023
June 2018	$	200,000	2.925%	1-month LIBOR	October 2020	October 2025
June 2018	$	200,000	2.925%	1-month LIBOR	October 2020	October 2025

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*  Plus applicable margin.

Fuel [Member] | Commodity Contract [Member]

Company's Derivative Instruments

At June 30, 2018, the Company’s derivative instruments included one fuel hedge agreement as follows:   

Date Entered	Notional Amount (in gallons per month)	Diesel Rate Paid Fixed (per gallon)	Diesel Rate Received Variable	Effective Date	Expiration Date
July 2016	1,000,000	$2.6345	DOE Diesel Fuel Index*	January 2018	December 2018

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*  If the national U.S. on-highway average price for a gallon of diesel fuel (“average price”), as published by the U.S. Department of Energy (“DOE”), exceeds the contract price per gallon, the Company receives the difference between the average price and the contract price (multiplied by the notional number of gallons) from the counterparty.  If the average price is less than the contract price per gallon, the Company pays the difference to the counterparty.