DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2017

NOTE 10—DERIVATIVE FINANCIAL INSTRUMENTS

The Company had variable rate debt outstanding which was subject to interest rate risk based on volatility in underlying interest rates. In April 2013, the Company entered into a pay fixed, receive variable interest rate swap, with an aggregate notional amount of $125.0 million, which the Company designated as a cash flow hedge. The derivative contract matured in April 2016. The change in value and amounts reclassified to interest expense during the nine months ended September 30, 2016 were nominal. There was no activity during the nine months ended September 30, 2017.

Changes in the fair values of the Company’s derivative instruments are presented on a net basis in the accompanying consolidated statements of operations. Changes in the fair value of the Company’s interest rate swap derivative instruments are as follows:


	For the Nine Months Ended
Derivatives designated as cash flow hedges	September 30, 2016
	(in thousands)
Beginning fair value of interest rate swap derivative instruments	$	(7)
Amount of unrealized losses recognized in OCI		(106)
Amount of gains reclassified from AOCI to earnings (effective portion)		113
Net change in fair value of interest rate swap derivative instruments		7
Ending fair value of interest rate swap derivative instruments	$	—