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DERIVATIVE INSTRUMENTS
 6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS
In September 2016, ESH REIT entered into a floating-to-fixed interest rate swap, as amended and supplemented from time to time, at a fixed rate of 1.175% and a floating rate of one-month LIBOR to manage its exposure to interest rate risk on a portion of the ESH REIT Term Facility. The notional amount of the interest rate swap as of June 30, 2019 was $250.0 million. The notional amount decreases by an additional $50.0 million every six months until the swap’s maturity in September 2021.
For the three and six months ended June 30, 2019, the Company received proceeds of $0.8 million and $1.8 million, respectively, and for the three and six months ended June 30, 2018, the Company received proceeds of $0.7 million and $1.1 million, respectively, that offset interest expense. As of June 30, 2019, $1.5 million is expected to be recognized through earnings over the following twelve months.
The table below presents the amounts and classification of the interest rate swap on the Company’s condensed consolidated financial statements (in thousands):
 
Other assets
Accumulated other comprehensive income, net of tax
 
Interest
expense, net
As of June 30, 2019
$
1,776

$
1,512

(1) 
 
As of December 31, 2018
$
5,789

$
4,934

(2) 
 
For the three months ended June 30, 2019
 
 
 
$
(821
)
For the three months ended June 30, 2018
 
 
 
$
(664
)
For the six months ended June 30, 2019
 
 
 
$
(1,797
)
For the six months ended June 30, 2018
 
 
 
$
(1,085
)
_______________________________
(1)
Changes during the six months ended June 30, 2019, on a pre-tax basis, consisted of changes in fair value of $(4.0) million.
(2)
Changes during the year ended December 31, 2018, on a pre-tax basis, consisted of changes in fair value of $(0.6) million and the cumulative effect adjustment of $(0.7) million recorded as a result of adopting ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities, on January 1, 2018.