Long-term debt

Long-term debt was comprised of the following:



	March 31, 2018			December 31, 2017
Senior secured credit facilities:
Term Loan A	$	750,000		$	775,000
Term Loan A-2	452,000			—
Term Loan B	3,368,750			3,377,500
Revolver	—			300,000
Senior notes	4,500,000			4,500,000
Acquisition obligations and other notes payable	151,167			150,512
Capital lease obligations	304,062			297,170
Total debt principal outstanding	9,525,979			9,400,182
Discount and deferred financing costs	(61,958		)	(63,951		)
	9,464,021			9,336,231
Less current portion	(184,136		)	(178,213		)
	$	9,279,885		$	9,158,018

Scheduled maturities of long-term debt at March 31, 2018 were as follows:



2018 (remainder of the year)	136,885
2019	1,206,668
2020	72,608
2021	3,307,539
2022	1,283,255
2023	32,340
Thereafter	3,486,684

On March 29, 2018, the Company entered into an Increase Joinder No. 1 (Increase Joinder Agreement) under its existing senior secured credit facilities. Pursuant to this Increase Joinder Agreement, the Company entered into an additional $995,000 Term Loan A-2. The new Term Loan A-2 bears interest at LIBOR plus an interest rate margin of 1.00%. As of March 31, 2018, the Company has initially drawn $452,000 of the Term Loan A-2, and the Company can draw up to an incremental $543,000 on Term Loan A-2 through its maturity date in June 2019.

During the first three months of 2018, the Company made mandatory principal payments under its senior secured credit facilities totaling $25,000 on Term Loan A and $8,750 on Term Loan B.

As of March 31, 2018, the Company maintains several active and forward interest rate cap agreements that have the economic effect of capping the Company's maximum exposure to LIBOR variable interest rate changes on specific portions of the Company's floating rate debt, as described below. The cap agreements are designated as cash flow hedges and, as a result, changes in the fair values of these cap agreements are reported in other comprehensive income. The amortization of the original cap premium is recognized as a component of debt expense on a straight-line basis over the terms of the cap agreements. The cap agreements do not contain credit-risk contingent features.

As of March 31, 2018, the Company maintains several currently effective interest rate cap agreements that were entered into in November 2014 with notional amounts totaling $3,500,000. These cap agreements became effective September 30, 2016 and have the economic effect of capping the LIBOR variable component of the Company’s interest rate at a maximum of 3.50% on an equivalent amount of the Company’s debt. These cap agreements expire on June 30, 2018. As of March 31, 2018, these cap agreements had an immaterial fair value. During the three months ended March 31, 2018, the Company recognized debt expense of $2,070 from these caps. During the three months ended March 31, 2018, the Company recorded an immaterial loss in other comprehensive income due to a decrease in unrealized fair value of these cap agreements.

As of March 31, 2018, the Company also maintains several forward interest rate cap agreements that were entered into in October 2015 with notional amounts totaling $3,500,000. These forward cap agreements will become effective June 29, 2018 and will have the economic effect of capping the LIBOR variable component of the Company’s interest rate at a maximum of 3.50% on an equivalent amount of its debt. These cap agreements expire on June 30, 2020. As of March 31, 2018, the total fair value of these cap agreements was an asset of approximately $2,446. During the three months ended March 31, 2018, the Company recorded a gain of $1,414 in other comprehensive income due to an increase in the unrealized fair value of these forward cap agreements.

The following table summarizes the Company’s derivative instruments as of March 31, 2018 and December 31, 2017:

March 31, 2018

December 31, 2017

Derivatives designated as hedging instruments

Balance sheet location

Fair value

Balance sheet location

Fair value

Interest rate cap agreements

Other long-term assets

2,446

Other long-term assets

1,032

The following table summarizes the effects of the Company’s interest rate cap agreements for the three months ended March 31, 2018 and 2017:



	Amount of unrecognized gains (losses) in OCI on interest rate cap agreements						Location of losses reclassified from accumulated OCI into income	Amount of losses reclassified from accumulated OCI into income
	Three months ended March 31,							Three months ended March 31,
Derivatives designated as cash flow hedges	2018			2017				2018			2017
Interest rate cap agreements	$	1,414		$	(5,217	)	Debt expense	$	2,070		$	2,070
Tax (benefit) expense	(364		)	2,029			Tax expense	(533		)	(805		)
Total	$	1,050		$	(3,188	)		$	1,537		$	1,265

As of March 31, 2018, the Company’s Term Loan B debt bears interest at LIBOR plus an interest rate margin of 2.75%. Term Loan B is subject to interest rate caps if LIBOR should rise above 3.50%. Term Loan A bears interest at LIBOR plus an interest rate margin of 2.00%. The capped portion of Term Loan A is $131,250 if LIBOR should rise above 3.50%. In addition, the uncapped portion of Term Loan A, which is subject to the variability of LIBOR, is $618,750. Term Loan A-2 is subject to the variability of LIBOR plus an interest rate margin of 1.00%. Interest rates on the Company’s senior notes are fixed by their terms.

The Company’s weighted average effective interest rate on the senior secured credit facilities at the end of the quarter was 4.67%, based on the current margins in effect of 2.00% for Term Loan A, 1.00% for Term Loan A-2, and 2.75% for Term Loan B, as of March 31, 2018.

The Company’s overall weighted average effective interest rate during the quarter ended March 31, 2018 was 4.87% and as of March 31, 2018 was 4.98%.

As of March 31, 2018, the Company’s interest rates are fixed on approximately 51.34% of its total debt.

As of March 31, 2018, the Company had undrawn revolving credit facilities totaling $1,000,000, of which approximately $14,355 was committed for outstanding letters of credit. The remaining amount is unencumbered. The Company also has approximately $22,351 of additional outstanding letters of credit related to its Kidney Care business and $211 of committed outstanding letters of credit related to DaVita Medical Group (DMG), which is backed by a certificate of deposit.