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Financial Instruments | 9 Months Ended
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Sep. 30, 2018
Investments All Other Investments [Abstract] |
Financial Instruments | Note 9. Financial Instruments Bonds We held corporate and municipal bonds with par values totaling $51.5 million and $49.5 million at September 30, 2018 and December 31, 2017, respectively. All bonds are investment grade and are classified as available-for-sale. These bonds have maturity or callable dates ranging from October 2018 through November 2023, and are included in “Funds held for clients – current” in the accompanying Consolidated Balance Sheets based on our intent and ability to sell these investments at any time under favorable conditions. The following table summarizes our bond activity for the nine months ended September 30, 2018 and the twelve months ended December 31, 2017 (in thousands):
|  | Nine Months Ended |  |  | Twelve Months Ended |
|  | September 30, 2018 |  |  | December 31, 2017 |
Fair value at beginning of period |  | $ | 51,101 |  |  | $ | 44,573 |
Purchases |  |  | 10,745 |  |  |  | 15,546 |
Redemptions |  |  | (1,331 | ) |  |  | (940 | )
Maturities |  |  | (7,370 | ) |  |  | (7,845 | )
Decrease in bond premium |  |  | (219 | ) |  |  | (160 | )
Fair market value adjustment |  |  | (538 | ) |  |  | (73 | )
Fair value at end of period |  | $ | 52,388 |  |  | $ | 51,101 |
Interest Rate Swaps We do not purchase or hold any derivative instruments for trading or speculative purposes. We utilize interest rate swaps to manage interest rate risk exposure associated with our floating-rate debt under the credit facility. Under these interest rate swap contracts, we receive cash flows from counterparties at variable rates based on the London Interbank Offered Rate (“LIBOR”) and pay the counterparties a fixed rate. See our Annual Report on Form 10-K for the year ended December 31, 2017 for further discussion on our interest rate swaps. During the second quarter of 2018, we entered into an additional interest rate swap with a notional value of $15 million at a fixed interest rate of 2.64% maturing in 5 years. The following table summarizes our outstanding interest rate swaps and their classification in the accompanying Consolidated Balance Sheets at September 30, 2018 and December 31, 2017 (in thousands):
|  | September 30, 2018
|  | Notional |  |  | Fair |  |  |
|  | Amount |  |  | Value |  |  | Balance Sheet Location
Interest rate swaps |  | $ | 70,000 |  |  | $ | 2,089 |  |  | Other non-current assets
Interest rate swaps |  | $ | 15,000 |  |  | $ | 21 |  |  | Other current assets
|  | December 31, 2017
|  | Notional |  |  | Fair |  |  |
|  | Amount |  |  | Value |  |  | Balance Sheet Location
Interest rate swaps |  | $ | 55,000 |  |  | $ | 1,055 |  |  | Other non-current assets
Interest rate swaps |  | $ | 15,000 |  |  | $ | 76 |  |  | Other current assets
Under the terms of the interest rate swaps, we pay interest at a fixed rate of interest plus applicable margin as stated in the agreement, and receive interest that varies with the one-month LIBOR. The notional value, fixed rate of interest and expiration date of each interest rate swap as of September 30, 2018 is (i) $15 million – 1.155% -November 2018, (ii) $25 million – 1.300% - October 2020, (iii) $10 million – 1.120% - February 2021, (iv) $20 million – 1.770% - May 2022, and (v) $15 million – 2.64% - June 2023. Refer to Note 10, Fair Value Measurements, for additional disclosures regarding fair value measurements. The following table summarizes the effects of the interest rate swaps on the accompanying Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2018 and 2017 (in thousands):
|  | Gain Recognized in AOCL, net of tax |  |  | (Loss) Gain Reclassified from AOCL into Expense |
|  | Three Months Ended |  |  | Three Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Interest rate swap |  | $ | 123 |  |  | $ | 11 |  |  | $ | (104 | ) |  | $ | 20 |
|  | Nine Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Interest rate swap |  | $ | 749 |  |  | $ | 82 |  |  | $ | (229 | ) |  | $ | 120 |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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- References No definition available. + Details
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