Derivative Instruments

Interest Rate Hedging

The Company enters into interest rate swap agreements to manage interest rate risk exposure. Interest rate swap agreements are utilized to limit the Company's exposure to interest rate risk by converting a portion of its floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the lives of the agreements without an exchange of the underlying principal amounts. The counterparties to the Company's interest rate swap agreements are highly rated financial institutions. In the unlikely event that the counterparties fail to meet the terms of the interest rate swap agreements, the Company's exposure is limited to the interest rate differential on the notional amount at each monthly settlement period over the life of the agreements. The Company does not anticipate any non-performance by the counterparties. Substantially all of the assets of certain indirect, wholly-owned subsidiaries of the Company have been pledged as collateral for the underlying indebtedness and the amounts payable under the interest rate swap agreements for each of these entities. In addition, certain assets of the Company's subsidiaries, are pledged as collateral for various credit facilities and the amounts payable under certain interest rate swap agreements.

During the three months ended March 31, 2019, the Company entered into the following interest rate swaps:



Date Effective	Notional Amount	Indexed To	Scheduled Maturity
March 29, 2019	$100.0 million	1 month LIBOR	March 31, 2026
March 29, 2019	$100.0 million	1 month LIBOR	March 31, 2026

As of March 31, 2019, the Company had interest rate swap agreements in place to fix interest rates on a portion of its borrowings under debt facilities with floating interest rates as summarized below:

The following table summarizes the impact of derivative instruments on the consolidated statements of operations and the consolidated statements of comprehensive income on a pretax basis (in thousands):



		Three Months Ended March 31,
Derivative instrument	Financial statement caption	2019			2018
Non-designated interest rate swaps	Realized (gain) loss on derivative instruments, net	$	(704	)	$	(248	)
Non-designated interest rate swaps	Unrealized (gain) loss on derivative instruments, net	$	986		$	(1,186	)
Designated interest rate swaps	Other comprehensive (income) loss	$	16,467		$	(15,813	)
Designated interest rate swaps	Interest and debt (income) expense	$	(2,355	)	$	(1,824	)

Derivatives

Net Notional Amount

Weighted Average
Fixed Leg (Pay) Interest Rate

Weighted Average
Remaining Term

Interest Rate Swap

$1,753.3 million