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Derivative Instruments and Hedging Activities | 12 Months Ended
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Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities |
12. | Derivative Instruments and Hedging Activities
Interest Rate Risk Management Concurrent with the Company’s July 13, 2017 borrowings under its new credit facility, the Company entered into a 44–month interest-rate swap to convert the debt’s variable interest rate to a fixed rate of interest. Under the swap contracts, the Company pays interest at a fixed rate of 1.99% and receives interest at a variable rate equal to the daily U.S. LIBOR on an initial notional amount of $15.0 million. Notional amounts were $10.3 million and $12.6 million at December 31, 2019 and 2018, respectively. These swap contracts have been designated as cash flow hedging instruments and qualified as effective hedges at inception under ASC Topic 815, “Derivatives and Hedging”. These contracts are recognized on the balance sheet at fair value. The effective portion of the changes in fair value on these instruments is recorded in other comprehensive income (loss) and is reclassified into the Consolidated Statements of Operations as interest expense in the same period in which the underlying hedge transaction affects earnings. Changes in the fair value of interest-rate swap contracts deemed ineffective are recognized in the Consolidated Statements of Operations as interest expense. Prior to July 13, 2017, the Company had outstanding interest-rate swap contracts related to term loan borrowings under the Company’s previous credit agreement. The fair value of the interest-rate swap contracts at December 31, 2019 and 2018 was a liability of $43,000 and an asset of $106,000, respectively, and is reflected in the Consolidated Balance Sheets as other current liabilities in 2019 and other current assets in 2018. The effect of derivative instruments on the Consolidated Statements of Operations and Comprehensive Income (“OCI”) for the year ended December 31, 2019 (in thousands):
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships |  | Amount of Gain / (Loss) recognized in OCI on Derivatives |  | Location of Gain / (Loss) reclassified from Accumulated OCI to Income |  | Amount of Gain / (Loss) reclassified from Accumulated OCI to Income |  | Location of Gain / (Loss) reclassified in Income on Derivatives |  | Amount of Gain /(Loss) recognized in Income on Derivatives
|  | (Effective Portion) |  | (Effective Portion) |  | (Effective Portion) |  | (Ineffective Portion/Amounts excluded from effectiveness testing)
Interest-Rate |  |  |  |  |  |  |  |  |  |
Swap |  |  |  |  |  |  |  |  |  |
Contracts |  | $(149) |  | Interest Expense |  | $32 |  | Interest Expense |  | $—
The effect of derivative instruments on the Consolidated Statements of Operations and Comprehensive Income (“OCI”) for the year ended December 31, 2018 (in thousands):
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships |  | Amount of Gain / (Loss) recognized in OCI on Derivatives |  | Location of Gain / (Loss) reclassified from Accumulated OCI to Income |  | Amount of Gain / (Loss) reclassified from Accumulated OCI to Income |  | Location of Gain / (Loss) reclassified in Income on Derivatives |  | Amount of Gain /(Loss) recognized in Income on Derivatives
|  | (Effective Portion) |  | (Effective Portion) |  | (Effective Portion) |  | (Ineffective Portion/Amounts excluded from effectiveness testing)
Interest-Rate |  |  |  |  |  |  |  |  |  |
Swap |  |  |  |  |  |  |  |  |  |
Contracts |  | $96 |  | Interest Expense |  | $(2) |  | Interest Expense |  | $—
Information on the location and amounts of derivative fair values in the Consolidated Balance Sheets (in thousands):
|  | December 31, 2019 |  |  | December 31, 2018 |
Derivative Instruments |  | Balance Sheet Location |  |  | Fair Value |  |  | Balance Sheet Location |  |  | Fair Value |
Interest-Rate Swap Contracts |  |  | Other Current Liabilities |  |  | $ | 43 |  |  |  | Other Current Assets |  |  | $ | 106 |
The estimated amount of pretax (loss) as of December 31, 2019 that is expected to be reclassified from other comprehensive income into earnings, within the next 12 months is approximately ($16,000).

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- References No definition available. + Details
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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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