Derivative Financial Instruments

The following table summarizes the terms and fair values of the Company's derivative financial instruments, as well as their classification on the Consolidated Balance Sheets:



						Fair Value at December 31,
(in thousands)						Assets (Liabilities) ⁽¹⁾
Effective Date	Maturity Date	Notional Amount		Bank Pays Variable Rate of	Regency Pays Fixed Rate of	2018			2017
12/6/18	6/28/19	$	250,000	30 year U.S. Treasury	3.147%	$	(5,491	)	—
4/3/17	12/2/20	300,000		1 Month LIBOR with Floor	1.824%	3,759			1,804
8/1/16	1/5/22	265,000		1 Month LIBOR with Floor	1.053%	10,838			10,744
4/7/16	4/1/23	20,000		1 Month LIBOR	1.303%	880			801
12/1/16	11/1/23	33,000		1 Month LIBOR	1.490%	1,376			1,166
6/2/17	6/2/27	37,500		1 Month LIBOR with Floor	2.366%	629			(177	)
Total derivative financial instruments						$	11,991		14,338

⁽¹⁾ Derivatives in an asset position are included within Other assets in the accompanying Consolidated Balance Sheets, while those in a liability position are included within Accounts payable and other liabilities.

These derivative financial instruments are all interest rate swaps, which are designated and qualify as cash flow hedges. The Company does not use derivatives for trading or speculative purposes and, as of December 31, 2018, does not have any derivatives that are not designated as hedges. The Company has master netting agreements; however, the Company generally does not have multiple derivatives subject to a single master netting agreement with the same counterparties and none are offset in the accompanying Consolidated Balance Sheets.

The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in accumulated other comprehensive income ("AOCI") and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The following table represents the effect of the derivative financial instruments on the accompanying consolidated financial statements:



Location and Amount of Gain (Loss) Recognized in OCI on Derivative						Location and Amount of Gain (Loss) Reclassified from AOCI into Income								Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded
	Year ended December 31,						Year ended December 31,								Year ended December 31,
(in thousands)	2018		2017	2016			2018			2017		2016			2018			2017		2016
Interest rate swaps	$	402	1,151	10,613		Interest expense	$	(5,342	)	(11,103	)	(10,553	)	Interest expense, net	$	(148,456	)	(132,629	)	(90,712	)
Interest rate swaps	$	—	—	(20,945	)	Loss on derivative instruments ⁽¹⁾	$	—		—		(40,586	)	Loss on derivative instruments ⁽¹⁾	$	—		—		40,586
⁽¹⁾ During 2016, the Company completed an equity offering, rather than its previously expected issuance of new fixed rate debt, to fund the repayment of maturing debt and to settle the forward starting swaps entered in contemplation of the previously anticipated new debt transaction. As a result of the equity offering, the Company believed that the issuance of new fixed rate debt within the remaining period of the forward starting swaps was probable not to occur. Accordingly, the Company ceased hedge accounting and reclassified the $40.6 million paid to settle the forward starting swaps from Accumulated other comprehensive income to earnings during 2016.

As of December 31, 2018, the Company expects $867,000 of net deferred losses on derivative instruments in AOCI, including the Company's share from its Investments in real estate partnerships, to be reclassified into earnings during the next 12 months. Included in the reclass is $7.4 million which is related to previously settled swaps on the Company's ten year fixed rate unsecured debt.