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Derivatives | 6 Months Ended
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Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Note 7. Derivatives In June 2021, our financial guarantee of the personal loan of a former executive officer was waived and we recognized a gain of $0.1 million from the cancellation of our financial guarantee derivative in other income (expense), net in the accompanying condensed consolidated statements of operations for the three months ended June 30, 2021. The associated restricted cash equivalent of $25.0 million became unrestricted and was reclassified to cash and cash equivalents. Due to the impact of COVID-19 and decreases in LIBOR, in March 2020, we entered into two blend-and-extend transactions to modify our initial swaps where the derivative liability of $12.3 million was carried over to the modified swaps, the fixed rate of 2.3% on the initial swaps was modified to a new average fixed interest rate of 1.7% and the maturity date was extended by two years to April 2024. The notional amount of each modified swap was $96.6 million. At the time of modification, the initial swaps were de-designated as cash flow hedges and amounts in other comprehensive income were frozen and are amortized to interest expense over the life of the original hedge relationship. As the modified swaps were considered off-market, they were accounted for as a debt host, and an embedded at-market derivative was bifurcated from the debt host. The at-market portion of the modified swaps were designated as cash flow hedges. The hybrid debt host is accounted for at amortized cost basis and will be amortized as we settle our modified swaps over the extended term with related interest recognized in interest expense, net in the accompanying condensed consolidated statements of operations. Derivative financial instruments and hybrid debt consisted of the following (in thousands):
|  | June 30, 2021 |  |  | December 31, 2020 |
Interest rate swap derivative liability, current portion |  | $ | 2,289 |  |  | $ | 2,177 |
Interest rate swaps |  |  | 395 |  |  |  | 3,640 |
Financial guarantee |  |  | — |  |  |  | 150 |
Total derivative liability, net of current portion |  | $ | 395 |  |  | $ | 3,790 |
Hybrid debt, current portion |  | $ | 3,265 |  |  | $ | 2,954 |
Hybrid debt, net of current portion |  | $ | 6,510 |  |  | $ | 8,152 |
The impact from losses from our interest rate cap, interest rate swaps, and hybrid debt on our condensed consolidated statements of operations were as follows (in thousands):
|  | Three Months Ended June 30 |  |  | Six Months Ended June 30 |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Net payments upon settlement of interest rate swaps |  | $ | 608 |  |  | $ | 113 |  |  | $ | 1,052 |  |  | $ | 442 |
Amortization of prior hedge effectiveness |  |  | 1,748 |  |  |  | 996 |  |  |  | 3,076 |  |  |  | 996 |
Amortization of interest rate cap premium |  |  | — |  |  |  | 53 |  |  |  | 28 |  |  |  | 115 |
Interest expense on hybrid debt |  |  | 180 |  |  |  | 211 |  |  |  | 368 |  |  |  | 222 |
Total, recorded in interest expense, net |  | $ | 2,536 |  |  | $ | 1,373 |  |  | $ | 4,524 |  |  | $ | 1,775 |

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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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