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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments

The following table summarizes the terms and fair values of the Company's derivative financial instruments, as well as their classification on the Consolidated Balance Sheets: 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value at December 31,
(in thousands)
 
 
 
 
 
 
 
 
 
Liabilities (2)
Effective Date
 
Maturity Date
 
Early Termination Date (1)
 
Notional Amount
 
Bank Pays Variable Rate of
 
Regency Pays Fixed Rate of
 
2015
 
2014
10/16/13
 
10/16/20
 
N/A
 
28,100

 
1 Month LIBOR
 
2.196%
 
$
(898
)
 
(764
)
8/1/15
 
8/1/25
 
2/1/16
(3) 
75,000

 
3 Month LIBOR
 
2.479%
 
—

 
(289
)
8/1/15
 
8/1/25
 
2/1/16
(3) 
50,000

 
3 Month LIBOR
 
2.479%
 
—

 
(193
)
8/1/15
 
8/1/25
 
2/1/16
(3) 
50,000

 
3 Month LIBOR
 
2.479%
 
—

 
(193
)
8/1/15
 
8/1/25
 
2/1/16
(3) 
45,000

 
3 Month LIBOR
 
3.412%
 
—

 
(3,964
)
6/15/17
 
6/15/27
 
12/15/17
 
20,000

 
3 Month LIBOR
 
3.488%
 
(1,798
)
 
(1,227
)
6/15/17
 
6/15/27
 
12/15/17
 
100,000

 
3 Month LIBOR
 
3.480%
 
(8,922
)
 
(6,080
)
6/15/17
 
6/15/27
 
12/15/17
 
100,000

 
3 Month LIBOR
 
3.480%
 
(8,921
)
 
(6,084
)
     Total derivative financial instruments
 
$
(20,539
)
 
(18,794
)

(1) Represents the date specified in the agreement for either optional or mandatory early termination which will result in cash settlement.
(2) Derivatives in an asset position are included within Other Assets in the accompanying Consolidated Balance Sheets, while those in a liability position are included within Accounts Payable and Other Liabilities.
(3) In connection with the issuance of $250.0 million of 3.9% fixed rate ten-year unsecured public debt in August 2015, the Company terminated and settled these swaps, resulting in cash payments of $7.3 million. The settlement value of these swaps will amortize through interest expense over the life of the debt.

These derivative financial instruments are all interest rate swaps, which are designated and qualify as cash flow hedges. The Company does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges. The Company has master netting agreements, however the Company does not have multiple derivatives subject to a single master netting agreement with the same counterparties. Therefore none are offset in the accompanying Consolidated Balance Sheets.
The Company expects to issue new debt in 2017. In order to mitigate the risk of interest rate volatility, the Company previously entered into $220 million of forward starting interest rate swaps to partially hedge the new debt expected to in 2017. These interest rate swaps lock in the 10-year treasury rate and swap spread at a weighted average fixed rate of 3.48%. A current market based credit spread applicable to Regency will be added to the locked in fixed rate at time of issuance that will determine the final bond yield.

The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income (loss) ("AOCI") and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings within interest expense.

The following table represents the effect of the derivative financial instruments on the accompanying consolidated financial statements:
Derivatives in FASB
ASC Topic 815 Cash
Flow Hedging
Relationships:
Amount of Gain (Loss)
Recognized in Other Comprehensive Loss on
Derivative (Effective
Portion)
 
Location and Amount of Gain (Loss)
Reclassified from
AOCI into
Income (Effective
Portion)
 
Location and Amount of Gain or
(Loss) Recognized in
Income on Derivative
(Ineffective Portion and
Amount Excluded from
Effectiveness Testing)
 
Year ended December 31,
 
 
 
Year ended December 31,
 
 
 
Year ended December 31,
(in thousands)
2015
 
2014
 
2013
 
 
 
2015
 
2014
 
2013
 
 
 
2015
 
2014
 
2013
Interest rate swaps
$
(10,089
)
 
(49,968
)
 
30,985

 
Interest expense
 
$
(9,152
)
 
(9,353
)
 
(9,433
)
 
Other expenses
 
$
—

 
—

 
—



As of December 31, 2015, the Company expects $9.2 million of net deferred losses on derivative instruments accumulated in other comprehensive income to be reclassified into earnings during the next 12 months, of which $8.3 million is related to previously settled swaps.