Derivative and Hedging

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative and Hedging

Derivatives and Hedging

In May 2016, the Company entered into certain pay-fixed (1.16%), receive-variable (one month LIBOR) interest rate swaps that were designated as a cash flow hedge. The Company is hedging approximately 46% of its outstanding debt through these instruments with outstanding notional amounts totaling $339.8 and $384.0 million December 31, 2019 and 2018, respectively. 

The hedge was determined to be highly effective and therefore all of the change in its fair value is recognized through Other comprehensive income. The fair value of these instruments was estimated using an income approach and observable market inputs. They were presented as follows:

(in thousands)	December 31, 2019		December 31, 2018
Balance sheet location of derivative financial instruments:
Prepaid expenses and other	$	1,382	$	4,930
Deferred charges and other assets, net	1,252		8,323
Total derivatives designated as hedging instruments	$	2,634	$	13,253

The table below summarizes changes in accumulated other comprehensive income (loss) by component:

(in thousands)	Gains (Losses) on Cash Flow Hedges			Income Tax (Expense) Benefit			Accumulated Other Comprehensive Income (Loss), net of taxes
Balance as of December 31, 2018	$	13,253		$	(4,973	)	$	8,280
Net change in unrealized gain (loss)	(6,540		)	1,630			(4,910		)
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense	(4,079		)	1,017			(3,062		)
Net current period other comprehensive income (loss)	(10,619		)	2,647			(7,972		)
Balance as of December 31, 2019	$	2,634		$	(2,326	)	$	308

As of December 31, 2019, the Company estimates that $1.4 million will be reclassified as a reduction of interest expense during the next twelve months.