Interest Rate Derivative Instruments

3 Months Ended

Mar. 31, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Interest Rate Derivative Instruments

6. Interest Rate Derivative Instruments

The Company entered into interest rate cap and swap agreements with a notional amount of $150 million on February 8, 2012, which are designated as cash flow hedges for hedge accounting. In addition, an interest rate cap of an additional $50 million was in place as of December 31, 2013 with a capped LIBOR rate of 3% through December 18, 2015. For derivative instruments that are accounted for as hedges, the change in fair value for the effective portions of qualifying hedges is recorded through other comprehensive income (loss). The total unrealized gain recorded in other comprehensive income (loss) was $0.1 million and $0.1 million for the three months ended March 31, 2014 and March 31, 2013, respectively.

Interest expense related to payments on interest rate swaps for the three months ended March 31, 2014 and March 31, 2013 were $0.2 million and $0.1 million, respectively.

As of March 31, 2014 and December 31, 2013 the value of the interest rate swaps was a liability of $0.3 million and $0.5 million, respectively. These values were determined using Level 2 inputs within the valuation hierarchy.