DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

On March 24, 2015, the Company entered into an interest rate swap ("Interest Rate Swap"), effectively converting a portion of its variable rate debt into fixed rate debt. The Interest Rate Swap is not accounted for as a hedge and changes in fair value are included directly in the unaudited condensed consolidated statement of operations. The Company adjusts the accrued swap asset or liability by the amount of the monthly net settlement as settlements are made. Under the terms of the Interest Rate Swap, a monthly net settlement is made on approximately the 8th of each month for the difference between the fixed rate (see fixed rate schedule) and the variable rate based upon the one month LIBOR rate on the notional amount of the Interest Rate Swap. The Interest Rate Swap has a notional amount of $200.0 million through April 8, 2020.

The fixed rate follows the schedule below:

April 8, 2015 to April 7, 2016	0.4726	%
April 8, 2016 to April 9, 2017	1.1570	%
April 10, 2017 to April 8, 2018	1.6810	%
April 9, 2018 to April 7, 2019	1.9610	%
April 8, 2019 to April 8, 2020	2.1430	%

The Company's transactions in derivative financial instruments are authorized and executed pursuant to its regularly reviewed policies and procedures, which prohibit the use of derivative financial instruments for trading or speculative purposes.

For the three months ended June 30, 2015, the Company recognized a gain on the Interest Rate Swap of $1.0 million which consisted of $1.1 million of unrealized gains related to the change in fair value of the Interest Rate Swap and a $0.1 million realized loss for the settlement payments made. The Company did not record a gain or loss on the Interest Rate Swap for the three months ended June 30, 2014. For the six months ended June 30, 2015, the Company recognized a gain on the Interest Rate Swap of $0.1 million which consisted of $0.2 million of unrealized gains related to the change in fair value of the Interest Rate Swap and a $0.1 million realized loss for the settlement payments made. The Company did not record a gain or loss on the Interest Rate Swap for the six months ended June 30, 2014.

NOTE 8—DERIVATIVE FINANCIAL INSTRUMENTS (Continued)

The following tables provide details regarding the Company's derivative financial instruments (in thousands):

	For the Three Months Ended June 30, 2015	For the Three Months Ended June 30, 2014	For the Six Months Ended June 30, 2015		For the Six Months Ended June 30, 2014
	Gain Recognized in Earnings (a)	Gain Recognized in Earnings	Gain Recognized in Earnings (a)		Gain Recognized in Earnings
Interest Rate Swap	1,007	—	$	119	$	—

	June 30, 2015		December 31, 2014
	Fair Value of Derivative (b)		Fair Value of Derivative
Interest Rate Swap (Note 11)	$	218	$	—

(a) Classified in Other (income) expenses—Gain on interest rate swap

(b) Classified in Assets—Prepaid expenses other assets