Derivative Financial Instruments

3 Months Ended

Mar. 31, 2017

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

(6)  Derivative Financial Instruments

At December 31, 2016, the Company had three interest rate swaps for notional amounts of $100 million each related to its  71/8% senior notes maturing in December 2021.  In January 2017, the Company sold these interest rate swaps to the counterparties for a net amount of $0.8 million.  The remaining balance of the derivative asset is being amortized to interest expense over the remaining term of the related notes.  For the three months ended March 31, 2017, $0.5 million of expense related to the amortization was recorded.

The location and effect of the derivative instruments on the condensed consolidated statement of operations, presented on a pre-tax basis, are as follows (in thousands):

Effect of derivative instrument	Location of (gain) loss  recognized	Three Months Ended March 31, 2016
Interest rate swap	Interest expense, net	$	(5,197)
Hedged item - debt	Interest expense, net		2,490
		$	(2,707)

For the three months ended March 31, 2016,  approximately $2.7 millionof interest income was related to the ineffectiveness associated with these fair value hedges.