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Derivative Financial Instruments | 9 Months Ended
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Sep. 30, 2018
Derivative Financial Instruments [Abstract] |
Derivative Financial Instruments | 12.DERIVATIVE FINANCIAL INSTRUMENTS The Company recognizes all derivatives on the Condensed Consolidated Balance Sheets at fair value. All of the Company’s derivatives have been designated as cash flow hedges; therefore, the effective portion of the changes in the fair value of derivatives will be recognized in accumulated other comprehensive income (loss) (“AOCIL”) until the hedged item is recognized in earnings. The ineffective portion of the changes in the fair value of derivatives will be immediately recognized in earnings. The Company classifies cash inflows and outflows from derivatives within operating activities on the Condensed Consolidated Statements of Cash Flows. One of the Company’s objectives for utilizing derivative instruments is to reduce its exposure to fluctuations in cash flows due to changes in the variable interest rates of certain borrowings under the Credit Agreement. The Company’s strategy to achieve that objective involves entering into interest rate swaps. The interest rate swaps outstanding at September 30, 2018 were specifically designated to the Credit Agreement and accounted for as cash flow hedges. At September 30, 2018, the Company’s derivative instruments included 16 interest rate swap agreements as follows:
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ Date Entered |  | Notional Amount |  | Fixed Interest Rate Paid* |  | Variable Interest Rate Received |  | Effective Date |  | Expiration Date
﻿April 2014 |  | $ | 100,000 |  | 1.800% |  |  | 1-month LIBOR |  | July 2014 |  | July 2019
﻿May 2014 |  | $ | 50,000 |  | 2.344% |  |  | 1-month LIBOR |  | October 2015 |  | October 2020
﻿May 2014 |  | $ | 25,000 |  | 2.326% |  |  | 1-month LIBOR |  | October 2015 |  | October 2020
﻿May 2014 |  | $ | 50,000 |  | 2.350% |  |  | 1-month LIBOR |  | October 2015 |  | October 2020
﻿May 2014 |  | $ | 50,000 |  | 2.350% |  |  | 1-month LIBOR |  | October 2015 |  | October 2020
﻿April 2016 |  | $ | 100,000 |  | 1.000% |  |  | 1-month LIBOR |  | February 2017 |  | February 2020
﻿June 2016 |  | $ | 75,000 |  | 0.850% |  |  | 1-month LIBOR |  | February 2017 |  | February 2020
﻿June 2016 |  | $ | 150,000 |  | 0.950% |  |  | 1-month LIBOR |  | January 2018 |  | January 2021
﻿June 2016 |  | $ | 150,000 |  | 0.950% |  |  | 1-month LIBOR |  | January 2018 |  | January 2021
﻿July 2016 |  | $ | 50,000 |  | 0.900% |  |  | 1-month LIBOR |  | January 2018 |  | January 2021
﻿July 2016 |  | $ | 50,000 |  | 0.890% |  |  | 1-month LIBOR |  | January 2018 |  | January 2021
﻿August 2017 |  | $ | 100,000 |  | 1.900% |  |  | 1-month LIBOR |  | July 2019 |  | July 2022
﻿August 2017 |  | $ | 200,000 |  | 2.200% |  |  | 1-month LIBOR |  | October 2020 |  | October 2025
﻿August 2017 |  | $ | 150,000 |  | 1.950% |  |  | 1-month LIBOR |  | February 2020 |  | February 2023
﻿June 2018 |  | $ | 200,000 |  | 2.925% |  |  | 1-month LIBOR |  | October 2020 |  | October 2025
﻿June 2018 |  | $ | 200,000 |  | 2.925% |  |  | 1-month LIBOR |  | October 2020 |  | October 2025
____________________ * Plus applicable margin. Another of the Company’s objectives for utilizing derivative instruments is to reduce its exposure to fluctuations in cash flows due to changes in the price of diesel fuel. The Company’s strategy to achieve that objective involves periodically entering into fuel hedges that are specifically designated to certain forecasted diesel fuel purchases and accounted for as cash flow hedges. At September 30, 2018, the Company’s derivative instruments included one fuel hedge agreement as follows:
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Date Entered |  | Notional Amount (in gallons per month) |  | Diesel Rate Paid Fixed (per gallon) |  | Diesel Rate Received Variable |  | Effective Date |  | Expiration Date
﻿July 2016 |  | 1,000,000 |  | $2.6345 |  | DOE Diesel Fuel Index* |  | January 2018 |  | December 2018
____________________ * If the national U.S. on-highway average price for a gallon of diesel fuel (“average price”), as published by the U.S. Department of Energy (“DOE”), exceeds the contract price per gallon, the Company receives the difference between the average price and the contract price (multiplied by the notional number of gallons) from the counterparty. If the average price is less than the contract price per gallon, the Company pays the difference to the counterparty. ﻿ The fair values of derivative instruments designated as cash flow hedges as of September 30, 2018, were as follows:
﻿ |  |  |  |  |  |  |  |
Derivatives Designated as Cash |  | Asset Derivatives |  | Liability Derivatives
Flow Hedges |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
﻿Interest rate swaps |  | Prepaid expenses and other current assets(a) | $ | 11,380 |  | Other long-term liabilities | $ | -
﻿ |  | Other assets, net |  | 25,834 |  |  |  |
﻿ |  |  |  |  |  |  |  |
﻿Fuel hedges |  | Prepaid expenses and other current assets(b) |  | 2,189 |  |  |  |
﻿Total derivatives designated as cash flow hedges |  |  | $ | 39,403 |  |  | $ | -
____________________
| (a) Represents the estimated amount of the existing unrealized gains on interest rate swaps as of September 30, 2018 (based on the interest rate yield curve at that date), included in AOCIL expected to be reclassified into pre-tax earnings within the next 12 months. The actual amounts reclassified into earnings are dependent on future movements in interest rates.
(b)Represents the estimated amount of the existing unrealized gains on the fuel hedge as of September 30, 2018 (based on the forward DOE diesel fuel index curve at that date), included in AOCIL expected to be reclassified into pre-tax earnings within the next 12 months. The actual amounts reclassified into earnings are dependent on future movements in diesel fuel prices. ﻿ The fair values of derivative instruments designated as cash flow hedges as of December 31, 2017, were as follows:
﻿ |  |  |  |  |  |  |  |
Derivatives Designated as Cash |  | Asset Derivatives |  | Liability Derivatives
Flow Hedges |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
﻿Interest rate swaps |  | Prepaid expenses and other current assets | $ | 5,193 |  | Accrued liabilities | $ | (903)
﻿ |  | Other assets, net |  | 15,182 |  | Other long-term liabilities |  | (493)
﻿ |  |  |  |  |  |  |  |
﻿Fuel hedges |  | Prepaid expenses and other current assets |  | 3,880 |  |  |  |
﻿Total derivatives designated as cash flow hedges |  |  | $ | 24,255 |  |  | $ | (1,396)
﻿ |  |  |  |  |  |  |  |
﻿ The following table summarizes the impact of the Company’s cash flow hedges on the results of operations, comprehensive income (loss) and AOCIL for the three and nine months ended September 30, 2018 and 2017:
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives Designated as Cash Flow Hedges |  | Amount of Gain or (Loss) Recognized as AOCIL on Derivatives, Net of Tax (Effective Portion)(a) |  | Statement of Net Income Classification |  | Amount of (Gain) or Loss Reclassified from AOCIL into Earnings, Net of Tax (Effective Portion) (b),(c)
﻿ |  | Three Months Ended September 30, |  |  |  | Three Months Ended September 30,
﻿ |  | 2018 |  | 2017 |  |  |  | 2018 |  | 2017
﻿Interest rate swaps |  | $ | 634 |  | $ | (361) |  | Interest expense |  | $ | 3,145 |  | $ | 376
﻿Fuel hedges |  |  | 222 |  |  | 1,680 |  | Cost of operations |  |  | (1,359) |  |  | 487
﻿Total |  | $ | 856 |  | $ | 1,319 |  |  |  | $ | 1,786 |  | $ | 863
﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives Designated as Cash Flow Hedges |  | Amount of Gain or (Loss) Recognized as AOCIL on Derivatives, Net of Tax (Effective Portion)(a) |  | Statement of Net Income Classification |  | Amount of (Gain) or Loss Reclassified from AOCIL into Earnings, Net of Tax (Effective Portion) (b),(c)
﻿ |  | Nine Months Ended September30, |  |  |  | Nine Months Ended September 30,
﻿ |  | 2018 |  | 2017 |  |  |  | 2018 |  | 2017
﻿Interest rate swaps |  | $ | 11,634 |  | $ | 224 |  | Interest expense |  | $ | 1,769 |  | $ | 1,729
﻿Fuel hedges |  |  | 2,226 |  |  | (1,030) |  | Cost of operations |  |  | (3,490) |  |  | 1,704
﻿Total |  | $ | 13,860 |  | $ | (806) |  |  |  | $ | (1,721) |  | $ | 3,433
___________________ (a)In accordance with the derivatives and hedging guidance, the effective portions of the changes in fair values of interest rate swaps and fuel hedges have been recorded in equity as a component of AOCIL. As the critical terms of the interest rate swaps match the underlying debt being hedged, no ineffectiveness is recognized on these swaps and, therefore, all unrealized changes in fair value are recorded in AOCIL. Because changes in the actual price of diesel fuel and changes in the DOE index price do not offset exactly each reporting period, the Company assesses whether the fuel hedges are highly effective using the cumulative dollar offset approach. (b)Amounts reclassified from AOCIL into earnings related to realized gains and losses on interest rate swaps are recognized when interest payments or receipts occur related to the swap contracts, which correspond to when interest payments are made on the Company’s hedged debt. (c)Amounts reclassified from AOCIL into earnings related to realized gains and losses on the fuel hedges are recognized when settlement payments or receipts occur related to the hedge contracts, which correspond to when the underlying fuel is consumed. The Company measures and records ineffectiveness on the fuel hedges in Cost of operations in the Condensed Consolidated Statements of Net Income on a monthly basis based on the difference between the DOE index price and the actual price of diesel fuel purchased, multiplied by the notional number of gallons on the contracts. There was no significant ineffectiveness recognized on the fuel hedges during the nine months ended September 30, 2018 and 2017. See Note 16 for further discussion on the impact of the Company’s hedge accounting to its consolidated comprehensive income (loss) and AOCIL. ﻿

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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