DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING

Information about our derivative financial instruments at March 31, 2016 and December 31, 2015 is as follows (dollars in thousands):

	March 31, 2016						December 31, 2015
	Number of Instruments	Notional Amount		Fair Value			Number of Instruments	Notional Amount		Fair Value
Interest rate swaps (liability)	1	$	75,000	$	(2,443	)	1	$	75,000	$	(1,811	)
	1	$	75,000	$	(2,443	)	1	$	75,000	$	(1,811	)

All of our interest rate swaps have been designated as cash flow hedges and are valued using a market approach, which is a Level 2 valuation technique. At March 31, 2016 and December 31, 2015, our remaining interest rate swap was in a liability position. We have not posted any collateral related to these agreements and are not in breach of any financial provisions of the agreements.

The table below details the presentation in the financial statements of the gain or loss recognized on derivative financial instruments designated as cash flow hedges (in thousands):

	For the Three Months Ended March 31,
	2016			2015
Loss recognized in accumulated other comprehensive income on derivative financial instruments (effective portion)	$	(938	)	$	(1,186	)
Loss reclassified from accumulated other comprehensive income to interest expense (effective portion)	$	(306	)	$	(425	)
Loss recognized in Other Expense (ineffective portion)	$	—		$	(1	)

Amounts reported in accumulated other comprehensive income related to derivative financial instruments will be reclassified to interest expense as interest payments are made on the hedged variable-rate debt. In the next twelve months, we estimate that an additional $2.4 million will be reclassified from other comprehensive income as an increase to interest expense.