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Derivative and Hedging | 12 Months Ended
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Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative and Hedging | Derivatives and Hedging The Company uses derivative financial instruments to manage its exposure to interest rate risk for its long-term variable-rate debt through interest rate swaps. The Company's interest rate swaps are all designated as cash flow hedges, and involve the receipt of variable-rate amounts from counterparties in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company does not use derivative financial instruments for trading or speculative purposes. Credit risk related to derivative financial instruments is considered minimal and is managed through the use of four counterparties with high credit standards and periodic settlements of positions. The Company entered into a pay-fixed, receive-variable interest rate swap of $174.6 million of notional principal in September 2012. The outstanding notional amount of this cash flow hedge was $100.4 million and $117.9 million as of December 31, 2018 and 2017, respectively. The outstanding notional amount decreases based upon scheduled principal payments on the 2012 debt. In May 2016, the Company entered into a pay-fixed, receive-variable interest rate swap of $256.6 million of notional principal with three counterparties. The outstanding notional amount of this cash flow hedge was $283.6 million and $300.4 million as of December 31, 2018 and 2017, respectively. The outstanding notional amount increases based upon draws made under a portion of the Company's Term Loan A-2 debt and as the 2012 interest rate swap's notional principal decreases; the outstanding notional amount decreases as the Company makes scheduled principal payments on the 2016 debt. The Company is hedging approximately 50% of its outstanding debt through its use of interest rate swaps with outstanding notional amounts totaling $384.0 million and $418.3 million at December 31, 2018 and 2017, respectively. The effective portion of changes in the fair value of interest rate swaps designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivative is recognized directly in earnings through interest expense. No hedge ineffectiveness was recognized during any of the periods presented. Interest payments made on the Company's variable-rate debt reported in accumulated other comprehensive income related to the interest rate swaps designated as cash flow hedges are reclassified to interest expense. As of December 31, 2018, the Company estimates that $4.9 million will be reclassified as a reduction of interest expense during the next twelve months. The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheet:
(in thousands) |  | December 31, 2018 |  | December 31, 2017
Balance sheet location of derivative financial instruments: |  |  |  |
Prepaid expenses and other |  | $ | 4,930 |  |  | $ | 2,411 |
Deferred charges and other assets, net |  | 8,323 |  |  | 10,776 |
Total derivatives designated as hedging instruments |  | $ | 13,253 |  |  | $ | 13,187 |
The table below summarizes changes in accumulated other comprehensive income (loss) by component:
(in thousands) | Gains (Losses) on Cash Flow Hedges |  | Income Tax (Expense) Benefit |  | Accumulated Other Comprehensive Income (Loss), net of taxes
Balance as of December 31, 2017 | $ | 13,187 |  |  | $ | (4,957 | ) |  | $ | 8,230 |
Net change in unrealized gain (loss) | 3,384 |  |  | (804 | ) |  | 2,580 |
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense | (3,318 | ) |  | 788 |  |  | (2,530 | )
Net current period other comprehensive income (loss) | 66 |  |  | (16 | ) |  | 50 |
Balance as of December 31, 2018 | $ | 13,253 |  |  | $ | (4,973 | ) |  | $ | 8,280 |

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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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