Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities

v3.19.3
Derivative Instruments and Hedging Activities
9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
At September 30, 2019 and December 31, 2018, the following table presents information about the fair value amounts of the Company’s derivative instruments are as follows:
 
Derivatives as of
 
September 30, 2019
 
December 31, 2018
 
Balance Sheet Location
 
Fair Value
 
Balance Sheet Location
 
Fair Value
Derivatives Designated as Hedging Instruments:
 
 
 
 
 
 
 
Interest rate swap contracts
Other assets
 
$
41

 
Other assets
 
$
703

Interest rate swap contracts
Other liabilities
 
7,565

 
Other liabilities
 
3,187

Derivatives Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
Interest rate swap contracts
Other assets
 
$

 
Other assets
 
$
30

Interest rate swap contracts
Other liabilities
 
35

 
Other liabilities
 

Commodity swap contracts
Other assets
 
167

 
Other assets
 
33

Commodity swap contracts
Other liabilities
 

 
Other liabilities
 
70

Interest make-whole provisions
Other liabilities
 
873

 
Other liabilities
 
1,808


As of September 30, 2019 and December 31, 2018 all but three and four, respectively, of the Company’s freestanding derivatives were designated as hedging instruments.
The following tables present information about the effects of the Company’s derivative instruments on the condensed consolidated statements of income and condensed consolidated statements of comprehensive income:
 
Location of (Gain) Loss Recognized in Net Income
 
Amount of (Gain) Loss Recognized in Net Income
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
2019
 
2018
 
2019
 
2018
Derivatives Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
Interest rate swap contracts
Other expenses, net
 
$
44

 
$
(41
)
 
$
(6
)
 
$
(166
)
Derivatives not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
Interest rate swap contracts
Other expenses, net
 
$
(3
)
 
$
(271
)
 
$
66

 
$
(344
)
Commodity swap contracts
Other expenses, net
 
$
(31
)
 
$
(33
)
 
$
(203
)
 
$
12

Interest make-whole provision
Other expenses, net
 
$
(150
)
 
$
16

 
$
(935
)
 
$
16


    
 
Nine Months Ended
 
September 30, 2019
Derivatives Designated as Hedging Instruments:
 
     Accumulated loss in AOCI at the beginning of the period
$
(1,824
)
            Cumulative impact from the adoption of ASU No. 2018-02
(217
)
            Unrealized loss recognized in AOCI
(3,714
)
            Gain reclassified from AOCI to other expenses, net
7

     Accumulated loss in AOCI at the end of the period
$
(5,748
)

In the third quarter of 2018, the Company adopted ASU 2017-12, which resulted in an increase to retained earnings of $432 and accumulated other comprehensive loss of $486 to remove the cumulative effect of hedging ineffectiveness previously recognized in earnings, as of July 1, 2018, for contracts designated as hedging instruments that were outstanding at the beginning of the third quarter 2018. Upon adoption of the ASU, the impact to reclassify the ineffectiveness of the Company’s hedge instruments in connection with prior periods was recorded. Accordingly, the Company’s condensed consolidated statement of changes in redeemable non-controlling interests and stockholders’ equity for the nine months ended September 30, 2018 reflect the adoption of ASU 2017-12.
The following tables present a listing of all the Company’s active derivative instruments as of September 30, 2019:
Active Interest Rate Swap
Effective Date
Expiration Date
Initial Notional Amount ($)
Status
11-Year, 5.77% Fixed
October 2018
October 2029
$
9,200

Designated
15-Year, 3.19% Fixed
June 2018
June 2033
10,000

Designated
3-Year, 2.46% Fixed
March 2018
December 2020
17,100

Not Designated
10-Year, 4.74% Fixed
June 2017
December 2027
14,100

Designated
15-Year, 3.26% Fixed
February 2023
December 2038
14,084

Designated
7-Year, 2.19% Fixed
February 2016
February 2023
20,746

Designated
8-Year, 3.70% Fixed
March 2020
June 2028
14,643

Designated
8-Year, 3.70% Fixed
March 2020
June 2028
10,734

Designated
8-Year, 1.71% Fixed
October 2012
March 2020
9,665

Designated
8-Year, 1.71% Fixed
October 2012
March 2020
7,085

Designated
15-Year, 5.30% Fixed
February 2006
February 2021
3,256

Designated
15.5-Year, 5.40% Fixed
September 2008
March 2024
13,081

Designated
Active Commodity Swap
Effective Date
Expiration Date
Initial Notional Amount (Volume)
Commodity Measurement
Status
1-Year, $2.68 MMBtu Fixed
May 2019
April 2020
437,004

MMBtus
Not Designated
1-Year, $2.70 MMBtu Fixed
May 2020
April 2021
435,810

MMBtus
Not Designated
Other Derivatives
Classification
Effective Date
Expiration Date
Fair Value ($)
Interest make-whole provisions
Liability
June/August 2018
December 2038
$
873