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Derivative Instruments
 12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company is exposed to interest rate risk related to its variable-rate debt. The Company balances its cost of debt and exposure to interest rates primarily through its mix of fixed-rate and variable-rate debt. From time to time, the Company may use interest rate swaps to manage its exposure to interest rate risk.
Cash flow hedges of interest rate risk
The Company has two interest rate swap agreements designated as cash flow hedges whose key terms are as follows (dollars in millions):
EffectiveMaturityFixedNotional Amount atAsset (Liability) Fair Value atClassification on
DateDateInterest RateDecember 31, 2020December 31, 2020December 31, 2019Balance Sheet
4/7/20168/1/20293.14%$57.9 $(4.8)$(0.2)Accrued and other liabilities
2/13/20202/27/20233.35%$50.0 $(1.3)N/AAccrued and other liabilities
Liabilities related to the interest rate swap are presented within Accrued and other liabilities and assets are presented within Prepaid expenses and other assets in the consolidated balance sheets. The changes in fair value of the cash flow hedge are recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest expense as interest is incurred on the related variable-rate debt.
The following table represents the pre-tax effect of the derivative instruments in the Company's consolidated statement of comprehensive income (loss) during the years ended December 31, 2020 and 2019 (in millions):
20202019
Derivatives in Designated Cash Flow Hedging Relationships:
Amount of gain (loss) recognized in OCI on derivatives$(6.9)$(4.0)
Impact of reclassification adjustment to interest expense included in Net Income (Loss)$1.0 $(0.1)
As of December 31, 2020, the Company expects to reclassify $1.6 million of net gains (losses) on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months.
Non-designated hedges
As of December 31, 2020, the Company has one interest rate swap that has not been designated as a cash flow hedge, whose key terms are as follows (dollars in millions):
EffectiveMaturityFixedNotional Amount atAsset (Liability) Fair Value atClassification on
DateDateInterest RateDecember 31, 2020December 31, 2020December 31, 2019Balance Sheet
1/1/20149/1/20215.95%$9.8 $(0.3)$(0.5)Accrued and other liabilities
The Company records gains or losses related to interest rate swaps that have not been designated as cash flow hedges in Interest and other income (expense), net in its consolidated statements of operations. There were $0.2 million of gains recognized in 2020 and no amounts recognized in 2019 related to changes in fair value.
The Company measures all of its interest rate swaps at fair value. The fair values of the Company's interest rate swaps (Level 2) are based on the estimated amounts that the Company would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs.