v3.20.1
DERIVATIVE AND HEDGING ACTIVITIES
 3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE AND HEDGING ACTIVITIES DERIVATIVE AND HEDGING ACTIVITIES
The Company from time to time enters into derivative financial instruments, such as interest rate collar agreements (“Collars”), to manage its exposure to fluctuations in interest rates under the Company’s variable rate debt.
Hedge Accounting Treatment
During the quarter ended June 30, 2019, the Company entered into a derivative rate hedging transaction in the aggregate notional amount of $560.0 million to manage interest rate risk on the Company’s variable rate debt. During the period of the hedging relationship, the beginning and ending balance of the Company’s variable rate debt was greater than the notional amount of the derivative rate hedging transaction. This transaction is tied to the one-month LIBOR interest rate. Under the Collar transaction, two separate agreements are established with an upper limit, or cap, and a lower limit, or floor, for the Company’s LIBOR borrowing rate. As of March 31, 2020, the Company had the following derivative outstanding, which was designated as a cash flow hedge that qualified for hedge accounting treatment:
Type
Of
Hedge		Notional
Amount		Effective
Date		CollarFixed
LIBOR
Rate		Expiration
Date		Notional
Amount
Decreases		Amount
After
Decrease
(amounts
in millions)		(amounts
in millions)
Jun. 29, 2020$460.0  
Cap2.75%  Jun. 28, 2021$340.0  
Collar$560.0  Jun. 25, 2019Floor0.402%  Jun. 28, 2024Jun. 28, 2022$220.0  
Jun. 28, 2023$90.0  
Total$560.0  
For the three months ended March 31, 2020, the Company recorded the net change in the fair value of this derivative as a loss of $3.2 million (net of a tax benefit of $0.9 million as of March 31, 2020) to the condensed consolidated statement of comprehensive income (loss). The fair value of this derivative was determined using observable market-based inputs (a Level 2 measurement) and the impact of credit risk on a derivative’s fair value (the creditworthiness of the Company for liabilities). As of March 31, 2020, the fair value of these derivatives was a liability of $3.4 million, and is recorded as other long-term liabilities on the condensed consolidated balance sheet. The Company does not expect to reclassify any portion of this amount to the condensed consolidated statement of operations over the next twelve months.
During the three months ended March 31, 2019, the Company had no derivatives that qualified for hedge accounting treatment.
The following table presents the accumulated derivative gain (loss) recorded in other comprehensive income (loss) as of March 31, 2020 and December 31, 2019:
Accumulated Derivative Gain (Loss)
DescriptionMarch 31,
2020		December 31,
2019
(amounts in thousands)
Accumulated derivative unrealized gain (loss)$(2,493) $(139) 

The following table presents the accumulated net derivative gain (loss) recorded in other comprehensive income (loss) for the three months ended March 31, 2020:
Other Comprehensive Income (Loss)
Net Change in Accumulated Derivative Unrealized Gain (Loss)Net Amount of Accumulated Derivative Gain (Loss) Reclassified to the Condensed Consolidated Statement of Operations
Three Months Ended March 31,
2020201920202019
(amounts in thousands)
$(2,354) $—  $—  $—