Derivative Financial Instruments

6 Months Ended

Jun. 30, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

NOTE 5: Derivative Financial Instruments

The following table summarizes the aggregate notional amounts and estimated net fair values of our derivative instruments as of June 30, 2020 and December 31, 2019:

	As of June 30, 2020						As of December 31, 2019
	Notional		Fair Value of Assets		Fair Value of Liabilities		Notional		Fair Value of Assets		Fair Value of Liabilities
Cash flow hedges:
Interest rate swap	$	150,000	$	—	$	1,421	$	150,000	$	953	$	—
Interest rate collars		250,000		—		15,776		250,000		—		4,330
Forward interest rate swaps		—		—		17,417		—		—		3,439
Total	$	400,000	$	—	$	34,614	$	400,000	$	953	$	7,769

On March 2, 2020 we entered into a forward-starting interest rate swap with a notional value of $150,000 and a strike rate of 0.985%. This forward interest rate swap has an effective date of May 17, 2022 and a maturity date of May 17, 2027. We designated this forward interest rate swap as a cash flow hedge at inception and determined that the hedge is highly effective in offsetting interest rate fluctuations associated with the identified indebtedness.

Effective interest rate swaps and caps are reported in accumulated other comprehensive income, and the fair value of these hedge agreements is included in other assets or other liabilities.

For our interest rate swap and collars that are considered highly effective hedges, we reclassified realized losses of $1,107 and $1,244 to earnings within interest expense for the three and six months ended June 30, 2020, respectively, and we expect $7,046 to be reclassified out of accumulated other comprehensive income to earnings over the next 12 months.