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Derivative Instruments
 12 Months Ended
Dec. 31, 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 December 31, 2016, the Company had interest rate swap agreements in place that hedge a declining notional value of debt ranging from approximately $245.0 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 December 31, 2016 and 2015, the fair value carrying amount of the Company's derivatives designated as hedging instruments are recorded as follows (dollars in thousands):
 
 
 
 
Asset / (Liability) Derivatives
Derivatives designated as hedging instruments
 
Balance Sheet Caption
 
December 31, 2016
 
December 31, 2015
Interest rate swaps
 
Prepaid expenses and other current assets
 
$
160

 
$
—

Interest rate swaps
 
Other assets
 
—

 
430

Interest rate swaps
 
Accrued liabilities
 
(870
)
 
(150
)
Interest rate swaps
 
Other long-term liabilities
 
(3,360
)
 
(3,180
)
Total derivatives designated as hedging instruments
 
$
(4,070
)
 
$
(2,900
)

The following tables summarize the income (loss) recognized in accumulated other comprehensive income ("AOCI") as of December 31, 2016 and 2015, and the amounts reclassified from AOCI into earnings for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands):
 
 
Amount of Income (Loss) Recognized
in AOCI on Derivative
(Effective Portion, net of tax)
 
Location of Income (Loss) Reclassified from AOCI into Earnings
(Effective Portion)
 
Amount of Income (Loss) Reclassified from
AOCI into Earnings
 
 
As of December 31,
 
 
Year ended December 31,
 
 
2016
 
2015
 
 
2016
 
2015
 
2014
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
$
(2,520
)
 
$
(1,790
)
 
Interest expense
 
$
(670
)
 
$
(420
)
 
$
—

 
 
 
 
 
 
Income (loss) from discontinued operations
 
$
—

 
$
(440
)
 
$
(970
)

Over the next 12 months, the Company expects to reclassify approximately $0.7 million of pre-tax deferred losses from AOCI to interest expense as the related interest payments for the designated interest rate swap 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 December 31, 2016 and 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)
December 31, 2016
Interest rate swaps
 
Recurring
 
$
(4,070
)
 
$
—

 
$
(4,070
)
 
$
—

December 31, 2015
Interest rate swaps
 
Recurring
 
$
(2,900
)
 
$
—

 
$
(2,900
)
 
$
—