The Company uses interest rate swap arrangements (the “Swaps”) to manage or hedge its interest rate risk. Notwithstanding the terms of the Swaps, the Company is ultimately obligated for all amounts due and payable under the Credit Facility. The Company does not use such instruments for speculative or trading purposes.

The Company designated the Swaps as cash flow hedges. Derivative instruments are recorded on the consolidated balance sheets at fair value. Unrealized gains and losses on derivatives designated as cash flow hedges are reported in other comprehensive income (loss) (“AOCI”) and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. Management intends that the Swaps remain effective and, on a quarterly basis, evaluates them to determine their effectiveness or ineffectiveness and records the change in fair value as an adjustment to other comprehensive income or loss.

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.

A summary of Swaps designated as cash flow hedges as of December 31, 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

For the years ended December 31, 2020 and 2019, the effect of the Swaps on the Company’s financial statements are as follows:

Cash Flow Hedging Derivatives

Total Gain or (Loss) Recorded to

AOCI

Amount of (Gain) or Loss

Reclassified from AOCI into

Income

2020

2019

2020

2019

Interest Rate Swaps

(9,867

)

(3,362

)

2,031

(387

)

As of December 31, 2020, the net amount of realized losses from the hedge agreements expected to be reclassified from AOCI into earnings within the next 12 months is $3.0 million.