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Interest Rate Caps
9 Months Ended
Sep. 30, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Interest Rate Caps

Note 4. Interest Rate Caps

The Company has interest rate cap contracts with an aggregate notional principal amount of $450.0 million. Each contract contains a strike rate against the one-month LIBOR (0.15% and 1.76% as of September 30, 2020 and December 31, 2019, respectively). The interest rate caps have maturities of April 2021 ($200.0 million with 3.50% strike rate), March 2023 ($100.0 million with 1.75% strike rate), August 2023 ($50.0 million with 0.50% strike rate), and October 2023 ($100.0 million with 0.50% 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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

In thousands

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Balance at beginning of period

 

$

52

 

 

$

6

 

 

$

 

 

$

249

 

Purchases

 

 

280

 

 

 

 

 

 

394

 

 

 

 

Fair value adjustment included as an increase in interest expense

 

 

(119

)

 

 

(4

)

 

 

(181

)

 

 

(247

)

Balance at end of period, included in other assets

 

$

213

 

 

$

2

 

 

$

213

 

 

$

2