Derivative Instruments

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

The Company utilizes interest rate swap agreements to fix the LIBOR-based variable portion of the interest rate on its long term debt. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. As of June 30, 2016, the Company had interest rate swap agreements in place that hedge a declining notional value of debt ranging from approximately $251.5 million to approximately $192.7 million, amortizing consistent with future scheduled debt principal payments. The interest rate swap agreements establish fixed interest rates in a range of 0.74% to 2.68% with various expiration terms extending to June 30, 2020. At inception, the interest rate swaps were and continue to be designated as cash flow hedges.

As of June 30, 2016 and December 31, 2015, the fair value carrying amount of the Company's derivative instruments are recorded as follows (dollars in thousands):

		Asset / (Liability) Derivatives
	Balance Sheet Caption	June 30, 2016			December 31, 2015
Derivatives designated as hedging instruments
Interest rate swaps	Other assets	$	—		$	430
Interest rate swaps	Accrued liabilities	(1,260		)	(150		)
Interest rate swaps	Other long-term liabilities	(8,560		)	(3,180		)
Total derivatives designated as hedging instruments		$	(9,820	)	$	(2,900	)

The following table summarizes the loss recognized in accumulated other comprehensive income or loss ("AOCI") as of June 30, 2016 and December 31, 2015, and the amounts reclassified from AOCI into earnings for the three and six months ended June 30, 2016 and 2015 (dollars in thousands):

	Amount of Loss Recognized in AOCI on Derivative (Effective Portion, net of tax)							Amount of Loss Reclassified from AOCI into Earnings
								Three months ended June 30,						Six months ended June 30,
	As of June 30, 2016			As of December 31, 2015			Location of Loss Reclassified from AOCI into Earnings (Effective Portion)	2016			2015			2016			2015
Derivatives designated as hedging instruments
Interest rate swaps	$	(6,080	)	$	(1,790	)	Interest expense	$	(110	)	$	—		$	(220	)	$	—
							Income from discontinued operations	$	—		$	(220	)	$	—		$	(440	)

Over the next 12 months, the Company expects to reclassify approximately $1.3 million of pre-tax deferred losses from AOCI to interest expense as the related interest payments for the designated interest rate swaps are funded.

The fair value of the Company's derivatives are estimated using an income approach based on valuation techniques to convert future amounts to a single, discounted amount. Estimates of the fair value of the Company's interest rate swaps use observable inputs such as interest rate yield curves. Fair value measurements and the fair value hierarchy level for the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 are shown below (dollars in thousands).  

	Description	Frequency	Asset / (Liability)			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
June 30, 2016	Interest rate swaps	Recurring	$	(9,820	)	$	—	$	(9,820	)	$	—
December 31, 2015	Interest rate swaps	Recurring	$	(2,900	)	$	—	$	(2,900	)	$	—