Derivative Instruments

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]



7.	Derivative Instruments

The Company is exposed to certain market risks relating to its ongoing business operations. From time to time, the Company enters into derivative instrument arrangements to manage various risks including interest rate risk.

As of December 31, 2018, we had four interest rate swap contracts in effect with a notional amount at inception collectively of $1.0 billion, with maturity dates from December 30, 2020 to December 31, 2022, at interest rates between 1.108 percent and 2.212 percent. On March 12, 2019, the Company entered into three additional interest rate swap contracts.

The following table presents relevant information for the interest rate swap agreements entered into during the six months ended June 30, 2019:



	Tranche A	Tranche B	Tranche C
Notional amount at inception (in thousands)	$150,000	$100,000	$200,000
Maturity date	3/12/2022	3/12/2022	3/12/2023
Fixed interest rate	2.41750%	2.42500%	2.41325%

As of June 30, 2019, outstanding interest rate swap contracts are intended to fix the future interest payments associated with $1.5 billion of the $2.4 billion outstanding borrowings under our 2016 Credit Agreement.

The following table presents information on the location and amounts of interest rate swap gains and losses:



(In thousands)		Three Months Ended June 30,					Six Months Ended June 30,
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income Statement	2019			2018		2019			2018
Interest rate swap agreements – unrealized portion	Net unrealized (loss) gain on financial instruments	$	(21,860	)	$	3,944	$	(34,069	)	$	17,452
Interest rate swap agreements – realized portion	Financing interest income	$	2,142		$	1,363	$	4,258		$	1,676

See Note 11, Fair Value, for more information regarding the valuation of the Company’s interest rate swaps.