Derivative Financial Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments And Hedging Activities Disclosure [Abstract]

10.	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)								Assets (Liabilities)⁽¹⁾
Effective Date	Maturity Date	Notional Amount		Bank Pays Variable Rate of	Regency Pays Fixed Rate of			2019			2018
12/6/18	6/28/19	$	250,000	30 year U.S. Treasury ⁽²⁾		3.147	%	$	—		$	(5,491	)
4/3/17	12/2/20		300,000	1 Month LIBOR with Floor ⁽³⁾		1.824	%		—			3,759
8/1/16	1/5/22		265,000	1 Month LIBOR with Floor		1.053	%		2,674			10,838
4/7/16	4/1/23		19,767	1 Month LIBOR		1.303	%		148			880
12/1/16	11/1/23		32,952	1 Month LIBOR		1.490	%		84			1,376
9/17/19	3/17/25		24,000	1 Month LIBOR		1.542	%		81			—
6/2/17	6/2/27		37,166	1 Month LIBOR with Floor		2.366	%		(1,515	)		629

Total derivative financial instruments								$	1,472			11,991

⁽¹⁾	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.

⁽²⁾

On March 7, 2019, the Company settled its 30 year Treasury rate lock in connection with its issuance of the $300 million 4.65% unsecured notes due March 2049 for $5.7 million, which is included in the balance of Accumulated other comprehensive income (loss) ("AOCI") and will be amortized and reclassified to earnings over the 30 year term of the hedged transaction.

⁽³⁾

On August 14, 2019, the Company paid an interest rate swap breakage fee of approximately $1.1 million to settle its interest rate swap in connection with the repayment in full of its $300 million term loan that was due to mature in December 2020. This breakage fee is included in Early extinguishment of debt in the accompanying Consolidated Statements of Operations.

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, as of December 31, 2019, 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 changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in accumulated other comprehensive income (“AOCI”) and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The following table represents the effect of the derivative financial instruments on the accompanying consolidated financial statements:

Location and Amount of Gain (Loss) Recognized in OCI on Derivative								Location and Amount of Gain (Loss) Reclassified from AOCI into Income							Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded
	Year ended December 31,								Year ended December 31,							Year ended December 31,
(in thousands)	2019			2018		2017			2019		2018		2017			2019		2018		2017
Interest rate swaps	$	(15,585	)		402		1,151	Interest expense, net	$	3,269		5,342		11,103	Interest expense, net	$	151,264		148,456		132,629

As of December 31, 2019, the Company expects $4.1 million of net deferred losses on derivative instruments in AOCI, including the Company's share from its Investments in real estate partnerships, to be reclassified into earnings during the next 12 months. Included in the reclassification is $4.3 million which is related to previously settled swaps on the Company's ten and thirty year fixed rate unsecured debt.