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Short-Term Borrowings, Long-Term Debt, and Interest Expense
 9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Short-Term Borrowings, Long-Term Debt, and Interest Expense Short-Term Borrowings, Long-Term Debt, and Interest Expense
Short-term borrowings and long-term debt consist of the following:
 
 
September 30,
2019
 
December 31,
2018
Revolver borrowings under the credit facility due 2021
$
340,000

 
$
300,000

Long-term debt
$
340,000

 
$
300,000



The Company's credit facility includes a revolving line of credit from the lenders of up to $450.0 million, including a $20.0 million letter of credit sub-facility and a $20.0 million swingline loan facility, all maturing on December 22, 2021. The credit agreement governing this facility also provides for possible additional revolving indebtedness under an incremental facility of up to $150.0 million (for an aggregate of revolving capacity up to $600.0 million) upon future request by the Company to existing lenders (and depending on their consent) or from other willing financial institutions invited by the Company and reasonably acceptable to the administrative agent to join in the credit agreement. This revolving credit facility increase, if implemented, may provide for higher applicable margins to either the increased portion or possibly the entire revolving credit facility, with limitations, than those in effect for the original revolving commitments under the credit agreement.
As of September 30, 2019, $340.0 million was outstanding under the revolving line of credit, which approximates fair value (determined using level 2 inputs within the fair value hierarchy) with total availability at $109.5 million, taking into account $0.5 million in face amount of letters of credit issued under the sub-facility. The current weighted average interest rate for all debt is 4.4%.
Among its affirmative covenants, the credit agreement governing this credit facility requires the Company to maintain the following consolidated ratios (as defined and calculated according to the credit agreement) as of the end of each fiscal quarter:
(a) “Total Leverage Ratio” less than or equal to 3.50 to 1.00.
(b) “Interest Coverage Ratio” greater than or equal to 3.00 to 1.00.

As of September 30, 2019, the Company was in full compliance with all debt covenant requirements.
Based on $190.0 million outstanding borrowings as floating rate debt, an immediate increase of one percentage point would cause an increase to interest expense of approximately $1.9 million per year.
Total interest paid by the Company for all indebtedness for the nine months ended September 30, 2019 and September 30, 2018 was $11.5 million and $10.4 million, respectively.
 
Interest expense, net consists of the following:
 
 
Three months ended
 
Nine months ended
 
September 30,
2019
 
September 30,
2018
 
September 30,
2019
 
September 30,
2018
Interest expense
$
3,967

 
$
3,703

 
$
11,592

 
$
10,281

Deferred financing cost
107

 
107

 
322

 
322

Interest income
(30
)
 
(18
)
 
(93
)
 
(50
)
Less: amount capitalized for capital projects
(54
)
 
(364
)
 
(241
)
 
(1,023
)
Total interest expense, net
$
3,990

 
$
3,428

 
$
11,580

 
$
9,530


In December 2018, the Company entered into an interest rate swap, swapping the LIBOR exposure of $150.0 million of floating rate debt, which is currently outstanding under our Credit Agreement, to a fixed rate to maturity obligation of 2.677% expiring in November 2021.
The Company manages interest rate risk by balancing the amount of fixed-rate and floating-rate debt to the extent practicable consistent with the credit status.
The table below presents the fair value of the Company's derivative financial instruments as well as their classification in the Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018.

Tabular Disclosure of Fair Values of Derivative Instruments
 
 
 
Fair value as of
Derivatives designated as hedging instruments
Balance Sheet Location
 
September 30,
2019
 
December 31,
2018
Interest Rate Contract
Other current liabilities
 
$
1,553

 
$
—

 
Other long-term liabilities
 
2,397

 
1,023

 
 
 
$
3,950

 
$
1,023



The table below presents the effect of the Company’s derivative financial instruments in the Consolidated Statements of Operations and AOCI for the three and nine months ended September 30, 2019 and September 30, 2018.

Tabular Disclosure of the Effect of Derivative Instruments
 
 
 
 
 
Derivatives in Cash Flow Hedging Relationships
 
Amount of Gain/(Loss) Recognized in AOCI on Derivative
 
Location of Gain/(Loss) Reclassified from AOCI into Income
 
Amount of Gain/(Loss) Reclassified from AOCI into Income
Interest Rate Contract
 
$
(164
)
 
Interest Income/(Expense)
 
$
(162
)
Three months ended September 30, 2019
 
$
(164
)
 
 
 
$
(162
)
 
 
 
 
 
 
 
Interest Rate Contract
 
$
(2,927
)
 
Interest Income/(Expense)
 
$
(302
)
Nine months ended September 30, 2019
 
$
(2,927
)
 
 
 
$
(302
)
 
 
 
 
 
 
 
Interest Rate Contract
 
$
—

 
Interest Income/(Expense)
 
$
—

Three months ended September 30, 2018
 
$
—

 
 
 
$
—

 
 
 
 
 
 
 
Interest Rate Contract
 
$
—

 
Interest Income/(Expense)
 
$
—

Nine months ended September 30, 2018
 
$
—

 
 
 
$
—