Derivative Financial Instruments Derivative Policy (Policies)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives, Policy [Policy Text Block]

Derivative Financial Instruments - Derivative financial instruments are reported at fair value as either assets or liabilities in the Condensed Consolidated Balance Sheets. These fair values are primarily calculated using discounted cash flow analysis valuation techniques that incorporate observable inputs, such as quoted forward interest rates, and incorporate credit risk adjustments to reflect the risk of default by the counterparty or the Company. The inputs to these valuations are considered Level 2 inputs.

The Company's derivative financial instruments primarily consist of LIBOR-based interest rate swap contracts, which were entered into with the objective of managing exposure to variability in interest rates on the Company's debt. All interest rate swap contracts are reported in the Condensed Consolidated Balance Sheets at fair value. For the interest rate swap contracts that are not designated as hedges, changes in fair value are recognized in interest expense, net in the Condensed Consolidated Statements of Operations. For the interest rate swap contracts that are designated as cash flow hedges, changes in fair value are recognized as a component of accumulated other comprehensive income (“AOCI”) in the Condensed Consolidated Balance Sheets and are reclassified into interest expense, net in the same period in which the related interest on debt affects earnings. For interest rate swap contracts that were initially designated as cash flow hedges, however, have since been de-designated, the amounts recognized as a component of AOCI are reclassified into interest expense, net in the same period in which the related interest on variable-rate debt affects earnings through the original maturity date of the related interest rate swap contracts while changes in fair value are recognized in interest expense, net in the period in which the related interest rate swap contracts are no longer designated as cash flow hedges. The interest rate swap contracts entered into during October 2019 included a significant financing component at inception, and as

such, the related cash flows are reflected in cash flows from financing activities in the Condensed Consolidated Statements of Cash Flows.