We have entered into interest rate derivatives to hedge the current and future interest rate payments on our variable rate debt. These derivative financial instruments can include interest rate swaps, caps, floors, options and forward contracts.

As of June 30, 2020, we had interest rate caps and swaps outstanding, with underlying variable benchmark interest rates ranging from one to six-month U.S. dollar LIBOR.

Some of our agreements with derivative counterparties require a two-way cash collateralization of derivative fair values. As of June 30, 2020 and December 31, 2019, we had cash collateral of $0.2 million and $0.6 million, respectively, from various counterparties and the obligation to return such collateral was recorded in accounts payable, accrued expenses and other liabilities. We had not advanced any cash collateral to counterparties as of June 30, 2020 or December 31, 2019.

The counterparties to our interest rate derivatives are primarily major international financial institutions. We continually monitor our positions and the credit ratings of the counterparties involved and limit the amount of credit exposure to any one party. We could be exposed to potential losses due to the credit risk of non-performance by these counterparties. We have not experienced any material losses to date.

Our derivative assets are recorded in other assets and our derivative liabilities are recorded in accounts payable, accrued expenses and other liabilities in our Condensed Consolidated Balance Sheets. The following tables present notional amounts and fair values of derivatives outstanding as of June 30, 2020 and December 31, 2019:


	June 30, 2020						December 31, 2019
	Notional amount (a)		Fair value		Notional amount (a)		Fair value
Derivative assets not designated as accounting hedges:
Interest rate caps	$	2,644,500	$	1,124	$	2,442,000	$	3,727
Derivative assets designated as accounting cash flow hedges:
Interest rate swaps	$	—	$	—	$	488,616	$	1,578
Interest rate caps	400,000		728		400,000		6,359
Total derivative assets			$	1,852			$	11,664


	June 30, 2020						December 31, 2019
	Notional amount (a)		Fair value		Notional amount (a)		Fair value
Derivative liabilities not designated as cash flow hedges:
Interest rate swaps	$	300,000	$	16,652	$	—	$	—
Derivative liabilities designated as accounting cash flow hedges:
Interest rate swaps	$	3,602,217	$	183,362	$	3,776,000	$	97,066
Total derivative liabilities			$	200,014			$	97,066

We recorded the following in other comprehensive loss related to derivative financial instruments for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Gain (Loss)
Effective portion of change in fair market value of derivatives designated as accounting cash flow hedges:
Interest rate swaps	$	(5,904)	$	(66,778)	$	(93,682)	$	(107,516)
Interest rate caps	(456)		—		(5,243)		—
Income tax effect	795		8,348		12,366		13,440
Net changes in cash flow hedges, net of tax	$	(5,565)	$	(58,430)	$	(86,559)	$	(94,076)

We expect to reclassify approximately $65 million from accumulated other comprehensive income (loss) (“AOCI”) as an increase in interest expense in our Condensed Consolidated Income Statements over the next 12 months. The following table presents the effect of derivatives recorded as reductions to or (increases) in interest expense in our Condensed Consolidated Income Statements for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Gain (Loss)
Derivatives not designated as accounting hedges:
Interest rate caps and swaps	$	(2,104)	$	(9,821)	$	(14,654)	$	(25,708)
Reclassification to Condensed Consolidated Income Statements:
Reclassification of amounts previously recorded within AOCI	(9,618)		2,235		(15,081)		6,166
Effect from derivatives on interest expense	$	(11,722)	$	(7,586)	$	(29,735)	$	(19,542)