Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

Cash Flow Hedges of Interest Rate Risk

As of September 30, 2021 and December 31, 2020, the Company had no interest rate swaps that were designated as qualifying hedging relationships. The Company had interest rate swap agreements with an aggregate $900.0 million notional amount, which were designated as cash flow hedges, and forward starting interest rate swaps with a total notional amount of $400.0 million, which were designated as cash flow hedges, that were terminated during the fourth quarter of 2020.

During the three and nine months ended September 30, 2020, the Company recorded unrealized gains of $3.7 million and unrealized losses of $81.4 million for changes in the fair value of the cash flow hedges in accumulated other comprehensive income. There were no such gains or losses recorded during the three and nine months ended September 30, 2021.

The Company reclassified previous losses of $0.1 million and $0.3 million for the three and nine months ended September 30, 2021, respectively, and losses of $5.4 million and $12.0 million for the three and nine months ended September 30, 2020, respectively, from accumulated other comprehensive income (loss) into interest expense as a result of the hedged transactions impacting earnings.

During the next twelve months, the Company estimates that an additional $0.4 million will be reclassified from other comprehensive income (loss) as an increase to interest expense.