Derivative Financial Instruments

6 Months Ended

Jun. 30, 2017

Derivative Financial Instruments [Abstract]

(6) Derivative Financial Instruments

The Company had three interest rate swaps for notional amounts of $100 million each, related to its 7 1/8% 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 six months ended June 30, 2017, $1.0 million of expense related to the amortization of the remaining derivative asset was recorded.

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


Effect of derivative asset	Location of (gain) loss recognized	Three Months Ended June 30, 2016		Six Months Ended June 30, 2016
Interest rate swap	Interest expense, net	$	(923)	$	(6,120)
Hedged item - debt	Interest expense, net		(320)		2,170
		$	(1,243)	$	(3,950)

For the three and six months ended June 30, 2016, $1.2 million and $4.0 million of interest income, respectively, was related to the ineffectiveness associated with this derivative asset.