Interest Rate Derivative Instruments

6 Months Ended

Jun. 30, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Interest Rate Derivative Instruments

6. Interest Rate Derivative Instruments

The Company entered into interest rate 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 June 30, 2014 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 amount of unrealized gains recorded in other comprehensive income (loss) for the six months ended June 30, 2014 and 2013 was $0.2 million.

Interest expense related to payments on interest rate swaps for the three and six months ended June 30, 2014 was $0.2 million and $0.3 million, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 2013, respectively.

As of June 30, 2014 and December 31, 2013 the value of the interest rate swaps was a liability of $0.2 million and $0.5 million, respectively. These values were determined using Level 2 inputs within the valuation hierarchy.