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Derivative Instruments
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS
NOTE O—DERIVATIVE INSTRUMENTS
Cash Flow Hedges of Interest Rate Risk
We enter into interest rate swap agreements in connection with our Term Loan facility to add stability to interest expense and to manage our exposure to interest rate movements. The derivative instruments are recorded on the balance sheet within other current or long-term assets or liabilities based on maturity dates at their fair values. As of December 31, 2019, the fair value of our interest rate swaps was a liability of $2.8 million and a liability of $1.3 million which are classified within accounts payable and accrued liabilities on our balance sheet. Our interest rate cap matured on June 30, 2019. At December 31, 2018, the fair value of our two interest rate swaps was a liability of $1.5 million and a liability of $0.7 million and were classified within other long-term liabilities on our balance sheet. The fair value of our interest rate cap was zero. We have designated the interest rate swap agreements as qualified cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and recognized in earnings in the same period or periods during which the hedged transaction affects earnings.
The following table summarizes the fair value of our derivative instruments (in thousands, except contract/notional amount). See Note N - Fair Value Accounting for more information regarding the estimated fair values of our derivative instruments at December 31, 2019 and 2018.
 
December 31, 2019
 
 
December 31, 2018
 
Maturity
Date
 
Contract/Notional
Amount
 
Carrying
Amount
 
Fair
Value
 
 
Maturity Date
 
Contract/Notional
Amount
 
Carrying
Amount
 
Fair
Value
LIBOR(1) interest rate swap agreement
2020
 

$440
 million
 
$
(2,768
)
 
$
(2,768
)
 
 
2020
 

$440
 million
 
$
(1,475
)
 
$
(1,475
)
LIBOR(1) interest rate swap agreement
2020
 

$200
 million
 
$
(1,259
)
 
$
(1,259
)
 
 
2020
 

$200
 million
 
$
(663
)
 
$
(663
)
LIBOR interest rate cap agreement

 
$
—

 
$
—

 
$
—

 
 
2019
 

$249
 million
 
$
—

 
$
—

(1) Agreements fix the LIBOR interest rate base to 2.74%
On May 1, 2018, as a result of entering into the new Credit Agreement, we determined the existing interest rate cap derivative no longer qualified for hedge accounting. During the year ended December 31, 2018 we recognized $76 thousand of deferred losses in accumulated other comprehensive loss into earnings.
During the year ended December 31, 2019, we had no ineffectiveness for the interest rate swap derivatives.
The following table summarizes the effect of derivative instruments (in thousands) on our income statements and our consolidated statements of comprehensive income for the years ended December 31, 2019, 2018 and 2017:
 
2019
 
2018
 
2017
Deferred losses from derivatives in OCI, beginning of period
$
(1,621
)
 
$
(76
)
 
$
(32
)
(Loss) gain recognized in OCI from derivative instruments
(1,432
)
 
(1,622
)
 
(45
)
Loss reclassified from Accumulated OCI
—

 
77

 
1

Deferred losses from derivatives in OCI, end of period
$
(3,053
)
 
$
(1,621
)
 
$
(76
)