Interest Rate Swap

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest Rate Swap

Interest Rate Swap

In order to manage interest rate risk in a cost-efficient manner, the Company entered into an interest rate swap during 2017 whereby the Company agreed to exchange with the counterparty, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to a notional amount. The interest rate swap is not designated for hedge accounting. The change in fair value of the interest rate swap is immediately recognized in earnings, within interest expense.

As of both June 30, 2019 and December 31, 2018, the notional amount of the interest rate swap was $150,000. A fair value liability of $905 was recorded within other liabilities in the unaudited condensed consolidated balance sheet as of June 30, 2019 and a fair value asset of $891 was recorded within other assets in the unaudited condensed consolidated balance sheet as of December 31, 2018. The total amount of loss included in interest expense in the unaudited condensed consolidated statement of operations for the three and six months ended June 30, 2019 was $434 and $1,796, respectively, and the total amount of gain subtracted from interest expense in the unaudited condensed combined statement of operations for the three and six months ended June 30, 2018 was $604 and $2,228, respectively.