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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
9 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Interest Rate Derivative

We are exposed to risks arising from rising interest rates on our variable rate debt instruments.  To manage these risks, we primarily use interest rate derivatives, which currently consist of one interest rate cap.  To mitigate the nonperformance risk, we routinely use a third party’s analysis of the creditworthiness of the counterparties, which supports our belief that the counterparties’ nonperformance risk is limited. All derivatives are recorded at fair value.

During the nine months ended September 30, 2018, we entered into an interest rate cap with a notional amount of $36.0 million and a rate cap of 2.2%. The interest rate cap had an effective date of March 21, 2018 and terminates on March 1, 2021. This instrument was not designated as a cash flow hedge. During the three and nine months ended September 30, 2018, there was no adjustment of the fair value on the interest rate cap. The estimated fair value of the interest rate cap at September 30, 2018 approximated $0.5 million.