Derivative Financial Instruments

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

In May 2016, the Company entered into interest rate swap agreements with a combined notional value of $300.0 million in an effort to limit its exposure to variable interest rates on its term loan. Interest began accruing on the interest rate swaps on June 30, 2016, and the swaps will expire on June 30, 2018, and May 14, 2020. The material terms of these agreements are substantially the same as those contained within the credit agreement, including the monthly settlements with the counterparty.

The interest rate swaps have been designated as cash flow hedges because these transactions were executed to manage the Company's exposure to variable interest rate movements and their impact on future interest payments. The effective portion of changes in fair value of derivative instruments that qualify as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified to net income in the period the hedged transaction is recognized in earnings. The ineffective portion of the change in fair value of derivative instruments is recognized as non-operating income or expense immediately when incurred and included in the "Interest expense" line item in the accompanying unaudited condensed consolidated statements of operations. The amount of hedge ineffectiveness recorded in net income during the three months endedMarch 31, 2017, was immaterial and was attributable to the inconsistencies in certain terms between the interest rate swaps and the credit agreement.

The fair values of the Company’s interest rate swaps designated as hedging instruments and the line items on the accompanying unaudited condensed consolidated balance sheets at the end of each period were as follows (in thousands):

	Balance Sheet Classification	March 31, 2017		December 31, 2016
Interest rate swaps - current	Prepaid expenses and other current assets	$	808	$	461
Interest rate swaps - non-current	Other long-term assets	$	1,600	$	1,717