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Derivative instruments and Hedges Activities | 6 Months Ended
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Jun. 30, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivative instruments and Hedges Activities | NOTE 10 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company manages its risk to changes in interest rates through the use of derivative instruments. The Company does not hold derivative instruments for trading or speculative purposes. For variable rate borrowings, the Company uses fixed interest rate swaps, effectively converting a portion of the variable interest rate payments to fixed interest rate payments. These swaps are designated as cash flow hedges. On February 20, 2020, the Company entered into a floating-to-fixed interest rate swap for an aggregate notional amount of $100.0 million to hedge a portion of the Company’s variable rate indebtedness. The Company designated the swap as a cash flow hedge. The swap requires the Company to pay a fixed rate of 1.294% per annum on the notional amount starting on February 28, 2020 to February 28, 2025. The floating-to-fixed interest rate settles monthly during the period of the cash flows and the realized gains and losses from the swap are recognized as a component of interest expense. On a quarterly basis, management evaluates the swap to determine its effectiveness and record the change in fair value as an adjustment to other comprehensive income or loss. Management intends that the swap remain effective. A summary of interest rate swap derivatives designated as cash flow hedges as of June 30, 2020 are as follows:
|  |  |  |  |  |  |  |  |  | Dates of Effected Cash Flows
Date of Interest Rate Swap Agreement |  | Notional Amount ($million) |  |  | Paid Fixed Interest Rate% |  |  | Beginning |  | Ending
September 30, 2016 (1) |  | $ | 100.0 |  |  | - |  |  | January 31, 2018 |  | January 31, 2023
August 31, 2017 |  | $ | 25.0 |  |  | 1.8475% |  |  | August 31, 2018 |  | August 31, 2023
August 8, 2018 |  | $ | 50.0 |  |  | 2.8540% |  |  | August 31, 2018 |  | August 31, 2023
August 8, 2018 |  | $ | 25.0 |  |  | 2.8510% |  |  | August 31, 2018 |  | August 31, 2023
February 20, 2020 |  | $ | 100.0 |  |  | 1.2940% |  |  | February 28, 2020 |  | February 28, 2025
(1) | On December 1, 2016, the Company sold the interest rate hedge agreement. The fair value of the interest rate hedge, as of the date of the sale, was recorded in other comprehensive income, net of tax. The gain from the sale will be recognized into earnings when earnings are impacted by the cash flows of the previously hedged variable interest rate.

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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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