Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2019

Derivatives and Hedging Activities

Schedule of derivative instruments

The following table summarizes our derivative positions as of September 30, 2019, and December 31, 2018 (in thousands):

Notional Amount											Fair Value (Level 2) (1)
September 30,		December 31,		Type of	Strike Rate		Effective		Expiration		September 30,		December 31,
2019		2018		Derivative	as of 9/30/19		Date		Date		2019		2018
$	—	$	50,000	Interest Rate Swap	—	%	2/28/2014		1/31/2019	(2)	$	—	$	43
	75,000		75,000	Interest Rate Swap	2.83		5/5/2015		5/5/2020			153		1,099
	75,000		75,000	Interest Rate Swap	4.12		5/5/2018		4/5/2023			(3,434)		(897)
	—		175,000	Interest Rate Swap	—	(3)	6/3/2019	(3)	4/3/2019	(3)		—		(3,183)
$	150,000	$	375,000								$	(3,281)	$	(2,938)

(1) Derivative assets are recorded at fair value in our condensed consolidated balance sheets in other assets and derivative liabilities are recorded at fair value in our condensed consolidated balance sheets in unearned revenue, prepaid rent and other liabilities. We do not net our derivative position by counterparty for purposes of balance sheet presentation and disclosure.

(2) On January 31, 2019, the remaining $50 million of a five-year interest rate swap agreement, which reduced our variability in cash flows relating to interest payments based on one-month LIBOR variable rate debt, expired.

(3) On December 6, 2018, we entered into forward-starting seven-year interest rate swap agreement to protect against adverse fluctuations in interest rates. The swap effectively fixed the interest rate at approximately 2.91% per annum plus the applicable spread. On April 3, 2019, we settled the $175 million forward-starting seven-year interest rate swap, in connection with the anticipated subsequent debt issuance of $200 million of the 2026 Notes, at a loss of $5.7 million. The loss is included in accumulated other comprehensive income and will be amortized to interest expense over the term of the 2026 Notes.