Derivatives and Hedging

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 outstanding notional amounts of the cash flow hedge which is composed of interest rate swap contracts were $361.9 million and $384.0 million as of June 30, 2019 and December 31, 2018, respectively.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the condensed consolidated balance sheets. The fair value of these instruments was estimated using an income approach and observable market inputs (Level II):



(in thousands)	June 30, 2019		December 31, 2018
Balance sheet location of derivative financial instruments:
Prepaid expenses and other	$	2,275	$	4,930
Deferred charges and other assets, net	1,733		8,323
Total derivatives designated as hedging instruments	$	4,008	$	13,253

The table below summarizes changes in accumulated other comprehensive income (loss) by component:



	Six Months Ended June 30, 2019
(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, 2018	$	13,253		$	(4,973	)	$	8,280
Net change in unrealized gain (loss)	(6,771		)	1,688			(5,083		)
Amounts reclassified from accumulated other comprehensive income to interest expense	(2,474		)	617			(1,857		)
Net current period other comprehensive income (loss)	(9,245		)	2,305			(6,940		)
Balance as of June 30, 2019	$	4,008		$	(2,668	)	$	1,340