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Interest Rate Caps
12 Months Ended
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Interest Rate Caps

Note 9. Interest Rate Caps

The Company has purchased interest rate cap contracts with an aggregate notional principal amount of $250.0 million and 2.50% strike rates against the one-month LIBOR (1.56% and 0.77% as of December 31, 2017 and 2016, respectively). The interest rate caps have maturities of April 2018 ($150.0 million), March 2019 ($50.0 million), and June 2020 ($50.0 million). When the one-month LIBOR exceeds 2.50%, the counterparty reimburses the Company for the excess over 2.50%. No payment is required by the Company or the counterparty when the one-month LIBOR is below 2.50%. The following is a summary of changes in the rate caps:

 

     December 31,  
In thousands    2017      2016  

Balance at beginning of period

   $ 62      $ 120  

Purchases

     100        112  

Fair value adjustment included as an increase in interest expense

     (64      (170
  

 

 

    

 

 

 

Balance at end of period, included in other assets

   $ 98      $ 62