Derivative Financial Instruments

12 Months Ended

Dec. 31, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

12.Derivative Financial Instruments

Derivative financial instruments at fair value consisted of the following (in thousands):

	December 31, 2016		Balance Sheet Location
Asset derivatives designated as hedging instruments:
Interest rate swaps	$	14,317	Other non-current assets
Total derivatives	$	14,317

The Company is exposed to interest rate risk relating to its outstanding debt facilities that have variable interest rates. In connection with closing the Term Loan Facility in August 2016, the Company entered into interest rate swaps with an aggregate notional amount of $270.0 million to offset changes in the variable interest rate for a portion of the Company’s LIBOR-indexed floating-rate loans. The notional amount of the interest rate swaps decreases through June 30, 2028 to match the Company’s estimated monthly and quarterly principal payments on its loans through that date. The Company had no other derivative financial instruments prior to entering into these interest rate swaps. The Company records derivatives at fair value.

The interest rate swaps are designated as cash flow hedges. The amount of accumulated other comprehensive income (“AOCI”) expected to be reclassified to interest expense within the next 12 months is approximately $0.1 million. The Company will discontinue the hedge accounting designation of these derivatives if interest payments on LIBOR-indexed floating rate loans compared to the payments under the derivatives are no longer highly effective.

The effect of derivative financial instruments on the consolidated statements of comprehensive income (loss) and the consolidated statements of operations, before tax effect, consisted of the following (in thousands):

	Year Ended December 31,
	2016			2015		Location of Gain (Loss)
Gains recognized in OCI - effective portion:
Interest rate swaps	$	13,133		$	—
Total	$	13,133		$	—
Losses reclassified from AOCI into income - effective    portion:
Interest rate swaps	$	(407	)	$	—	Interest expense
Total	$	(407	)	$	—
Gains recognized in income - ineffective portion:
Interest rate swaps	$	1,591		$	—	Other (income) expense
Total	$	1,591		$	—