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Derivative Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2019
Fair Value of Derivative Instrument Designated as Cash Flow Hedges

The fair values of derivative instruments designated as cash flow hedges as of September 30, 2019, were as follows:

Derivatives Designated as Cash

Asset Derivatives

Liability Derivatives

Flow Hedges

    

Balance Sheet Location

    

Fair Value

    

Balance Sheet Location

    

Fair Value

Interest rate swaps

 

Prepaid expenses and other current assets(a)

$

2,954

 

Accrued liabilities(a)

$

(2,148)

 

Other assets, net

 

842

 

Other long-term liabilities

(53,288)

Total derivatives designated as cash flow hedges

$

3,796

$

(55,436)

____________________

(a)Represents the estimated amount of the existing unrealized gains and losses, respectively, on interest rate swaps as of September 30, 2019 (based on the interest rate yield curve at that date), included in AOCIL expected to be reclassified into pre-tax earnings within the next 12 months. The actual amounts reclassified into earnings are dependent on future movements in interest rates.

The fair values of derivative instruments designated as cash flow hedges as of December 31, 2018, were as follows:

Derivatives Designated as Cash

Derivative Assets

Derivative Liabilities

Flow Hedges

    

Balance Sheet Location

    

Fair Value

    

Balance Sheet Location

    

Fair Value

Interest rate swaps

 

Prepaid expenses and other current assets(a)

$

10,737

 

Other long-term liabilities

$

(9,314)

 

Other assets, net

 

10,675

 

 

Total derivatives designated as cash flow hedges

$

21,412

$

(9,314)

Impact of Cash Flow Hedges on Results of Operations, Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)

The following table summarizes the impact of the Company’s cash flow hedges on the results of operations, comprehensive income (loss) and AOCIL for the three and nine months ended September 30, 2019 and 2018:

Derivatives

Statement of

Amount of (Gain) or Loss Reclassified

Designated as Cash

Amount of Gain or (Loss) Recognized

Net Income

from AOCIL into Earnings,

Flow Hedges

as AOCIL on Derivatives, Net of Tax (a)

Classification

Net of Tax (b), (c)

Three Months Ended

Three Months Ended

September 30, 

September 30, 

    

2019

    

2018

    

    

2019

    

2018

Interest rate swaps

$

(11,379)

$

634

Interest expense

$

(1,451)

$

3,145

Fuel hedges

 

 

222

 

Cost of operations

 

 

(1,359)

Total

$

(11,379)

$

856

$

(1,451)

$

1,786

Derivatives

Statement of

Amount of (Gain) or Loss Reclassified

Designated as Cash

Amount of Gain or (Loss) Recognized

Net Income

from AOCIL into Earnings,

Flow Hedges

    

as AOCIL on Derivatives, Net of Tax (a)

Classification

Net of Tax (b), (c)

Nine Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2019

    

2018

    

    

2019

    

2018

Interest rate swaps

$

(41,761)

$

11,634

Interest expense

$

(5,085)

$

1,769

Fuel hedges

 

 

2,226

 

Cost of operations

 

 

(3,490)

Total

$

(41,761)

$

13,860

$

(5,085)

$

(1,721)

____________________

(a)In accordance with the derivatives and hedging guidance, the changes in fair values of interest rate swaps and fuel hedges have been recorded in equity as a component of AOCIL. As the critical terms of the interest rate swaps match the underlying debt being hedged, all unrealized changes in fair value are recorded in AOCIL. Because changes in the actual price of diesel fuel and changes in the DOE index price did not offset exactly each reporting period, the Company assessed whether the fuel hedges were highly effective using the cumulative dollar offset approach.
(b)Amounts reclassified from AOCIL into earnings related to realized gains and losses on interest rate swaps are recognized when interest payments or receipts occur related to the swap contracts, which correspond to when interest payments are made on the Company’s hedged debt.
(c)Amounts reclassified from AOCIL into earnings related to realized gains and losses on the fuel hedges are recognized when settlement payments or receipts occur related to the hedge contracts, which correspond to when the underlying fuel is consumed.
Interest Rate Swap [Member]  
Company's Derivative Instruments

At September 30, 2019, the Company’s derivative instruments included 16 interest rate swap agreements as follows:

    

    

Fixed

    

Variable

    

    

Notional

Interest

Interest Rate

Date Entered

Amount

Rate Paid*

Received

Effective Date

Expiration Date

May 2014

$

50,000

 

2.344

%  

1-month LIBOR

 

October 2015

 

October 2020

May 2014

$

25,000

 

2.326

%  

1-month LIBOR

 

October 2015

 

October 2020

May 2014

$

50,000

 

2.350

%  

1-month LIBOR

 

October 2015

 

October 2020

May 2014

$

50,000

 

2.350

%  

1-month LIBOR

 

October 2015

 

October 2020

April 2016

$

100,000

 

1.000

%  

1-month LIBOR

 

February 2017

 

February 2020

June 2016

$

75,000

 

0.850

%  

1-month LIBOR

 

February 2017

 

February 2020

June 2016

$

150,000

 

0.950

%  

1-month LIBOR

 

January 2018

 

January 2021

June 2016

$

150,000

 

0.950

%  

1-month LIBOR

 

January 2018

 

January 2021

July 2016

$

50,000

 

0.900

%  

1-month LIBOR

 

January 2018

 

January 2021

July 2016

$

50,000

 

0.890

%  

1-month LIBOR

 

January 2018

 

January 2021

August 2017

$

100,000

 

1.900

%  

1-month LIBOR

 

July 2019

 

July 2022

August 2017

$

200,000

 

2.200

%  

1-month LIBOR

 

October 2020

 

October 2025

August 2017

$

150,000

 

1.950

%  

1-month LIBOR

 

February 2020

 

February 2023

June 2018

$

200,000

 

2.925

%  

1-month LIBOR

 

October 2020

 

October 2025

June 2018

$

200,000

 

2.925

%  

1-month LIBOR

 

October 2020

 

October 2025

December 2018

$

200,000

 

2.850

%  

1-month LIBOR

 

July 2022

 

July 2027

____________________

* Plus applicable margin.