Derivatives and Hedging

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

Derivatives and Hedging

The Company's interest rate swaps are pay-fixed (1.16%), receive-variable (one month LIBOR) that hedged approximately 45.4% of outstanding debt with outstanding notional amounts totaling $328.7 and $339.8 million March 31, 2020 and December 31, 2019, respectively. 

The fair value of these instruments was estimated using an income approach and observable market inputs. The hedge was determined to be highly effective and therefore all of the change in its fair value was recognized through Other comprehensive income. During the three months ended March 31, 2020 the fair market value decreased by $8.1 million due to a decline in the one month LIBOR. They were presented as follows:

(in thousands)	March 31, 2020		December 31, 2019
Balance sheet location of derivative financial instruments:
Prepaid expenses and other	$	—	$	1,382
Deferred charges and other assets, net	—		1,252
Accrued liabilities and other	2,731		—
Other liabilities	2,769		—
Total derivatives designated as hedging instruments	$	5,500	$	2,634

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, 2019	$	2,634		$	(2,326	)	$	308
Net change in unrealized gain (loss)	(7,706		)	1,921			(5,785		)
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense	(428		)	107			(321		)
Net current period other comprehensive income (loss)	(8,134		)	2,028			(6,106		)
Balance as of March 31, 2020	$	(5,500	)	$	(298	)	$	(5,798	)