Financial Instruments

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

Financial Instruments

We are exposed to various market risks, including changes in interest rates. To manage risks associated with the volatility of changes in interest rates, we may enter into interest rate management instruments.

We may utilize interest rate swaps to manage our interest expense exposure by fixing our interest rate on portions of our floating rate term loan. We have entered into a $75 million notional value interest rate swap expiring in December 2016. Under the terms of the swap, we pay a fixed interest rate of 1.08% and receive interest at a variable rate equal to 30 day LIBOR. We did not provide or receive any collateral for this contract.

Fair Value of Derivative Instruments

The notional amounts and fair values of derivative instruments are shown in the table below:

	As of June 30, 2016						As of December 31, 2015
	Notional amount		Fair value				Notional amount		Fair value
(in thousands)			Asset		Liability (1)				Asset		Liability (1)
Undesignated derivatives:
Interest rate swap	$	75,000	$	—	$	235	$	75,000	$	—	$	299

⁽¹⁾ Balance recorded as other liabilities in Condensed Consolidated Balance Sheets

Upon refinancing our term loan B in November 2013, this hedge no longer qualified as a cash flow hedge and gains and losses on the derivative are recorded in current period earnings. The balance in accumulated other comprehensive loss at the date of discontinuance of hedge accounting is being amortized into earnings on a straight-line basis through December 2016.

	Three Months Ended   June 30,				Six Months Ended   June 30,
(in thousands)	2016		2015		2016		2015
Amounts reclassified from accumulated OCL, gain	$	96	$	96	$	192	$	192
Gain (loss) on derivative	77		64		64		(110		)