Interest Rate Caps

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Note 4. Interest Rate Caps

The Company has purchased interest rate cap contracts with an aggregate notional principal amount of $400.0 million. Each contract contains a strike rate against the one-month LIBOR (2.26% and 1.56% as of September 30, 2018 and December 31, 2017, respectively). The interest rate caps have maturities of March 2019 ($50.0 million with 2.50% strike rate), April 2020 ($100.0 million with 3.25% strike rate), June 2020 ($50.0 million with 2.50% strike rate), and April 2021 ($200.0 million with 3.50% strike rate). When the one-month LIBOR exceeds the strike rate, the counterparty reimburses the Company for the excess over the strike rate. No payment is required by the Company or the counterparty when the one-month LIBOR is below the strike rate. The following is a summary of changes in the rate caps:


	Three Months Ended September 30,						Nine Months Ended September 30,
In thousands	2018			2017			2018		2017
Balance at beginning of period	$	718		$	113		$	98	$	62
Purchases		—			—			481		100
Fair value adjustment included in interest expense		(5	)		(36	)		134		(85	)

Balance at end of period, included in other assets	$	713		$	77		$	713	$	77