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Derivative Instruments | 9 Months Ended
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Sep. 30, 2019
Derivative Instrument Detail [Abstract] |
Derivative Instruments | NOTE 10. DERIVATIVE INSTRUMENTS From time to time, we enter into derivative financial instruments to manage certain cash flow and fair value risks. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset or liability to a particular risk are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in the cash flows of a specific asset or liability that is attributable to a particular risk, such as interest rate risk, are considered cash flow hedges. We have a $40.0 million term loan that matures in December 2019. In September 2019, we entered into a $40.0 million interest rate swap, t he objective which is to lock in the index component rate on an expected new term loan in December 2019. This cash flow hedge requires settlement in December 2019. Additionally, at September 30, 2019, we have five interest rate swaps associated with $357.5 million of term loan debt. These cash flow hedges convert variable rates ranging from three-month and one-month LIBOR plus 1.85% to 2.15%, to fixed rates ranging from 3.88% to 4.82%. Our cash flow hedges are expected to be highly effective in achieving offsetting cash flows attributable to the hedged interest rate risk through the term of the hedge. At September 30, 2019, the amount of net losses expected to be reclassified into earnings in the next 12 months is approximately $3.6 million. The following table presents the gross fair values of derivative instruments on our Condensed Consolidated Balance Sheets:
|  |  |  | Asset Derivatives |  |  |  |  | Liability Derivatives |
(in thousands) |  | Location |  | September 30, 2019 |  |  | December 31, 2018 |  |  | Location |  | September 30, 2019 |  |  | December 31, 2018 |
Derivatives designated in cash flow hedging relationships: |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | Other assets, non-current |  | $ | 736 |  |  | $ | 1,510 |  |  | Other long-term obligations |  | $ | 29,322 |  |  | $ | 2,888 |
The following table details the effect of derivatives on our Condensed Consolidated Statements of Income:
|  |  |  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(in thousands) |  | Location |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Derivatives designated in fair value hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Realized loss on interest rate contracts1 |  | Interest expense |  | $ | — |  |  | $ | (52 | ) |  | $ | (18 | ) |  | $ | (138 | )
Loss on hedged debt basis adjustment included in debt extinguishment |  |  |  |  | — |  |  |  | — |  |  |  | (165 | ) |  |  | — |
|  |  |  | $ | — |  |  | $ | (52 | ) |  | $ | (183 | ) |  | $ | (138 | )
Derivatives designated in cash flow hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Loss) income recognized in other comprehensive income, net of tax |  |  |  | $ | (7,384 | ) |  | $ | 1,330 |  |  | $ | (26,576 | ) |  | $ | 1,394 |
Loss reclassified from accumulated other comprehensive income1 |  | Interest expense |  | $ | (406 | ) |  | $ | (261 | ) |  | $ | (668 | ) |  | $ | (456 | )
Interest expense, net |  |  |  | $ | 8,475 |  |  | $ | 10,109 |  |  | $ | 21,821 |  |  | $ | 25,125 |
1 | Realized gain (loss) on hedging instruments consist of net cash settlements and interest accruals on interest rate swaps during the periods.

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- References No definition available. + Details
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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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