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Derivative Instruments and Risk Management Activities | 3 Months Ended
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Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT ACTIVITIES | DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT ACTIVITIES All of the Company’s interest rate derivative instruments are designated as cash flow hedges. The related gains or losses on these interest rate derivative instruments are deferred in stockholders’ equity as a component of accumulated other comprehensive income (loss). These deferred gains or losses are recognized in income in the period in which the related items being hedged are recognized in expense. Monthly contractual settlements of these swap positions are recognized as “Floorplan interest expense or Other interest expense, net”, in the Company’s accompanying Consolidated Statements of Operations. To the extent that the change in value of a derivative contract does not perfectly offset the change in the value of the items being hedged, that ineffective portion is immediately recognized in other income or expense. As of March 31, 2019, all of the Company’s derivative instruments that were in effect were determined to be effective. The Company had no gains or losses related to ineffectiveness or amounts excluded from effectiveness testing recognized in the Consolidated Statements of Operations for the three months ended March 31, 2019 or 2018, respectively. The Company held 26 interest rate derivative instruments in effect as of March 31, 2019 of $902.4 million in notional value that fixed its underlying one-month London Interbank Offered Rate (“LIBOR”) at a weighted average rate of 2.3%. For the three months ended March 31, 2019 and 2018, the impact of the Company’s interest rate hedges in effect decreased floorplan interest expense by $0.3 million and increased floorplan interest expense by $1.7 million, respectively. Total floorplan interest expense, inclusive of the aforementioned impact of the Company’s interest rate hedges, was $15.7 million and $14.1 million for the three months ended March 31, 2019 and 2018, respectively. In addition to the $902.4 million of swaps in effect as of March 31, 2019, the Company held two additional interest rate derivative instruments, both of which have forward start dates of December 2020. These two forward-starting swaps expire in December 2025 and December 2030. The aggregate notional value of these two forward-starting swaps was $125.0 million, and the weighted average interest rate was 1.8%. The combination of the interest rate derivative instruments currently in effect and these forward-starting derivative instruments is structured such that the notional value in effect at any given time through December 2030 does not exceed $902.4 million, which is less than the Company’s expectation for variable-rate debt outstanding during such period. Assets and liabilities associated with interest rate derivative instruments as reflected in the accompanying balance sheets were as follows (in thousands):
|  | March 31, 2019 |  | December 31, 2018
Assets from interest rate risk management activities: |  |  |  |
Prepaid expenses and other current assets |  | $ | 189 |  |  | $ | 444 |
Other assets |  | 8,251 |  |  | 13,132 |
Total |  | $ | 8,440 |  |  | $ | 13,576 |
Liabilities from interest rate risk management activities: |  |  |  |
Accrued expenses and other current liabilities |  | $ | 254 |  |  | $ | 115 |
Liabilities from interest rate risk management activities |  | 2,430 |  |  | 1,696 |
Total |  | $ | 2,684 |  |  | $ | 1,811 |
Included in Accumulated other comprehensive income (loss) at March 31, 2019 and 2018, were accumulated unrealized gains, net of income taxes, totaling $4.4 million and $8.7 million, respectively, related to these interest rate derivative instruments. The following table presents the impact during the current and comparative prior year periods for the Company’s interest rate derivative instruments on its Consolidated Statements of Operations and Consolidated Balance Sheets (in thousands):
|  | Amount of Unrealized Income (Loss), Net of Tax, Recognized in Other Comprehensive Income (Loss)
|  | Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationship |  | 2019 |  | 2018
Interest rate derivative instruments |  | $ | (4,238 | ) |  | $ | 7,892 |
|  | Amount of Income (Loss) Reclassified from Other Comprehensive Income (Loss) into Statements of Operations
Location of Income (Loss) Reclassified from Other Comprehensive Income (Loss) into Statements of Operations |  | Three Months Ended March 31,
| 2019 |  | 2018
Floorplan interest expense, net |  | $ | 344 |  |  | $ | (1,737 | )
Other interest expense, net |  | 110 |  |  | (254 | )
The net amount of gain expected to be reclassified out of other comprehensive income (loss) into earnings as an offset to floorplan interest expense or other interest expense, net in the next twelve months is $2.4 million.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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