Derivatives And Hedging

12 Months Ended

Dec. 31, 2016

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, 2016	Other Assets, net	$	126	Other Liabilities, net	$	—
December 31, 2015	Other Assets, net	2,664		Other Liabilities, net	725

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, 2016
Assets	$	126	$	—	$	126	$	—		$	—	$	126
December 31, 2015
Assets	2,664		—		2,664		(346		)	—		2,318
Liabilities	725		—		725		(346		)	—		379

Cash Flow Hedges:

As of December 31, 2016 and 2015, we had three interest rate swap contracts, maturing March 2020, with an aggregate notional amount of $200 million that were designated as cash flow hedges and fix the LIBOR component of the interest rates at 1.5%. We have determined that these contracts are highly effective in offsetting future variable interest cash flows.

During 2016, we entered into and settled a forward-starting interest rate swap contract with an aggregate notional amount of $200 million hedging future fixed-rate debt issuances, which fixed the 10-year swap rates at 1.5% per annum. Upon settlement of this contract in August 2016, we paid $2.1 million resulting in a loss of $2.0 million in accumulated other comprehensive loss.

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 during 2015, we received $5.0 million resulting in a gain in accumulated other comprehensive loss.

As of December 31, 2016 and 2015, the net gain balance in accumulated other comprehensive loss relating to cash flow interest rate swap contracts was $6.4 million and $8.2 million, respectively, and will be reclassified to net interest expense as interest payments are made on the originally hedged debt. Within the next 12 months, a loss of approximately $.2 million in accumulated other comprehensive loss is expected to be reclassified to net interest expense related to our interest rate contracts.

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, 2016	$	3,192		Interest expense, net	$	(1,435	)	Interest expense, net	$	(96	)
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		)

Fair Value Hedges:

Associated with the refinancing of a secured note, on June 24, 2016, we terminated two interest rate swap contracts that were designated as fair value hedges and had an aggregate notional amount of $62.9 million. Upon settlement, we received $2.2 million, which was recognized as part of the gain on extinguishment of debt related to the hedged debt.

As of December 31, 2015, we had two interest rate swap contracts, maturing through October 2017, with an aggregate notional amount of $63.7 million 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%. We have determined that our fair value hedges were 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 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) (3)		Amount of Gain  (Loss) Recognized in Income (2) (3)
Year Ended December 31, 2016
Interest expense, net	$	(418	)	$	418	$	3,140	$	3,140
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

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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.

(3) Included in the caption for the year ended December 31, 2016 is $2.2 million received upon the termination of two interest rate swap contracts.