Derivatives And Hedging

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives And Hedging

Derivatives and Hedging

The fair value of all our interest rate swap contracts was reported as follows (in thousands):

	Assets			Liabilities
	Balance Sheet Location	Amount		Balance Sheet Location	Amount
Designated Hedges:
December 31, 2015	Other Assets, net	$	2,664	Other Liabilities, net	$	725
December 31, 2014	Other Assets, net	3,891		Other Liabilities, net	109

The gross presentation, the effects of offsetting for derivatives with a right to offset under master netting agreements and the net presentation of our interest rate swap contracts is as follows (in thousands):

							Gross Amounts Not Offset in Balance Sheet
	Gross Amounts Recognized		Gross Amounts Offset in Balance Sheet		Net Amounts Presented in Balance Sheet		Financial Instruments			Cash Collateral Received		Net Amount
December 31, 2015
Assets	$	2,664	$	—	$	2,664	$	(346	)	$	—	$	2,318
Liabilities	725		—		725		(346		)	—		379
December 31, 2014
Assets	3,891		—		3,891		—			—		3,891
Liabilities	109		—		109		—			—		109

Cash Flow Hedges:

As of December 31, 2015, we had three interest rate swap contracts, maturing in March 2020, with an aggregate notional amount of $200.0 million that were designated as cash flow hedges and fixed the interest rate at 1.5%. As of December 31, 2014, we had one interest rate swap contract, maturing in December 2015, with an aggregate notional amount of $5.2 million that was designated as a cash flow hedge and fixed the interest rate at 2.4%. We have determined that these contracts are highly effective in offsetting future variable interest cash flows.

During 2015, we entered into and settled two forward-starting interest rate swap contracts with an aggregate notional amount of $215 million hedging future fixed-rate debt issuances, which fixed the 10-year swap rates at 2.0% per annum. Upon settlement of these contracts, we received $5.0 million resulting in a gain in accumulated other comprehensive loss.

As of December 31, 2015 and 2014, the net gain balance in accumulated other comprehensive loss relating to cash flow interest rate swap contracts was $8.2 million and $3.4 million, respectively, and will be reclassified to net interest expense as interest payments are made on our fixed-rate debt. Within the next 12 months, a loss of approximately $.9 million in accumulated other comprehensive loss is expected to be amortized to net interest expense.

Summary of cash flow interest rate swap contract hedging activity is as follows (in thousands):

Derivatives Hedging Relationships	Amount of (Gain) Loss Recognized in Other Comprehensive Income on Derivative (Effective Portion)			Location of Gain (Loss)  Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain (Loss)  Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)			Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount  Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount  Excluded from Effectiveness Testing)
Year Ended December 31, 2015	$	(1,946	)	Interest expense, net	$	(2,798	)	Interest expense, net	$	—
Year Ended December 31, 2014	(131		)	Interest expense, net	(1,682		)	Interest expense, net	(370		)
Year Ended December 31, 2013	(6,423		)	Interest expense, net	(2,537		)	Interest expense, net	238

Fair Value Hedges:

As of December 31, 2015 and 2014, we had two interest rate swap contracts, maturing through October 2017, with an aggregate notional amount of $63.7 million and $65.3 million, respectively, that were designated as fair value hedges and convert fixed interest payments at rates of 7.5% to variable interest payments ranging from 4.41% to 4.44% and 4.24% to 4.27%, respectively. We have determined that our fair value hedges are highly effective in limiting our risk of changes in the fair value of fixed-rate notes attributable to changes in interest rates.

A summary of the impact on net income for our fair value interest rate swap contract hedging activity is as follows (in thousands):

	Gain (Loss)  on Contracts			Gain (Loss)  on Borrowings		Net Settlements and Accruals on Contracts (1)		Amount of Gain  (Loss) Recognized in Income (2)
Year Ended December 31, 2015
Interest expense, net	$	(1,228	)	$	1,228	$	2,030	$	2,030
Year Ended December 31, 2014
Interest expense, net	(1,386		)	1,386		2,179		2,179
Year Ended December 31, 2013
Interest expense, net	(4,643		)	4,643		4,082		4,082

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(1) Amounts in this caption include gain (loss) recognized in income on derivatives and net cash settlements.

(2) No ineffectiveness was recognized during the respective periods.