We are exposed to market risks related to fluctuations in interest rates. To mitigate these risks, we utilize derivative instruments in the form of interest rate swaps. We do not enter into derivative transactions for speculative purposes.

Series A of our Senior Notes bears interest at a fixed rate of 4.01% and Series B bears interest at a fixed rate of 4.11%. Our Credit Facility bears interest at variable rates from LIBOR plus 1.375% to a maximum of LIBOR plus 2.00%. We are subject to interest rate risk on the debt in excess of $25 million drawn on our Credit Facility.

In 2014, we entered into two interest rate swap agreements for a total notional amount of $50 million to hedge changes in the variable rate interest expense on $50 million of our existing or replacement LIBOR-priced debt. One of the swap agreements with a value of $25 million expired on August 29, 2019. The remaining swap agreement, fixes the LIBOR portion of the interest rate at 2.50% through August 29, 2024. This swap is measured at fair value and recorded in our Consolidated Balance Sheet as an asset or liability. It is designated and qualifies as a cash flow hedging instrument and is highly effective. Unrealized losses are deferred to shareholders' equity as a component of accumulated other comprehensive income (loss) and are recognized in income as an increase or decrease to interest expense in the period in which the related cash flows being hedged are recognized in expense.

At December 31, 2019, we had fixed rate debt aggregating $175 million and variable rate debt aggregating $132 million, after taking into account the effect of the swaps.

The fair values of outstanding derivative instruments at December 31, 2019 and 2018 are as follows (in thousands):

	Fair Value of Derivatives
	2019			2018			Balance Sheet Classification
Derivatives designated as hedges:
5 yr interest rate swap	$	—		$	135		Other Assets
10 yr interest rate swap		(1,054	)		(70	)	Other Long Term (Liabilities)
	$	(1,054	)	$	65

The fair value of all outstanding derivatives was determined using a model with inputs that are observable in the market or can be derived from or corroborated by observable data.

The effect of the interest rate swaps on the Consolidated Statements of Operations for the years ended December 31, 2019 and 2018 was as follows (in thousands):

	2019			2018			Income Statement Classification
Derivatives designated as hedges:
5 yr interest rate swap	$	(121	)	$	(64	)	Interest Expense
10 yr interest rate swap		60			133		Interest Expense
	$	(61	)	$	69