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DERIVATIVES AND HEDGING ACTIVITIES
 9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING ACTIVITIES DERIVATIVES AND HEDGING ACTIVITIES
In February 2021, the Company entered into an interest rate cap agreement with a member of the bank syndicate as the counterparty. The Company entered into the interest rate cap agreement to mitigate the variable interest rate risk associated with its outstanding mortgage borrowings.
The Company designated the interest rate cap as a cash flow hedge, and the effective portion of the hedge is reflected as a component of other comprehensive income. The interest rate cap has the same maturity date as the Amended Mortgage Loan and has an amortizing notional amount that was $60,127 as of September 30, 2021. The interest rate cap agreement requires the counterparty to pay the Company an amount equal to the applicable notional amount multiplied by the rate by which the LIBOR index exceeds a 1% strike rate during the period.
The Company assesses the effectiveness of the interest rate cap on a quarterly basis and at September 30, 2021, the Company has determined that the interest rate cap was effective. Accordingly, the gain or loss related to the change in fair value of the interest rate cap is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense in the same period during which the hedged forecasted transaction affects earnings. The fair value of the interest rate cap of $54 at September 30, 2021 was included in other noncurrent assets on the Company's Consolidated Balance Sheets.
In conjunction with the refinancing of its outstanding borrowings during October 2020, the Company terminated its interest rate swap. Following the termination, $90 was recorded in other comprehensive income and was reclassified as an adjustment to earnings over the remaining term of the original hedge. Of this amount, $38 was recorded as a decrease to retained earnings for the nine months ended September 30, 2021.
As of September 30, 2021, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:
Interest Rate DerivativeNumber of InstrumentsNotional
Interest Rate Cap1$60,127 
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheets as of September 30, 2021 and December 31, 2020.
Asset DerivativesLiability Derivatives
Fair Value at:Fair Value at:
Balance Sheet ClassificationSeptember 30, 2021December 31, 2020Balance Sheet ClassificationSeptember 30, 2021December 31, 2020
Interest Rate CapOther noncurrent assets$54 $— Other noncurrent liabilities$— $— 

The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income for the three months ended September 30, 2021 and September 30, 2020.
Effect of Derivative Instruments on the Consolidated Statements of Income
Amount of Gain (Loss) Recognized in Other Comprehensive Income on DerivativeLocation of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into IncomeAmount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Three Months Ended September 30,Three Months Ended September 30,
2021202020212020
Interest Rate Swap$— $105 
Interest Expense (a)
$— $49 
Interest Rate Cap$(13)$— 
Interest Expense (a)
$— $— 
Total$(13)$105 $— $49 
(a) Total interest expense presented in the consolidated income statements for the three months ended September 30, 2021 and 2020 was $1,104 and $1,172, respectively.
The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income for the nine months ended September 30, 2021 and September 30, 2020.
Effect of Derivative Instruments on the Consolidated Statements of Income
Amount of Gain (Loss) Recognized in Other Comprehensive Income on DerivativeLocation of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into IncomeAmount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Nine Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Interest Rate Swap$— $(115)
Interest Expense (a)
$(38)$148 
Interest Rate Cap$(33)$— 
Interest Expense (a)
$— $— 
Total$(33)$(115)$(38)$148 
(a) Total interest expense presented in the consolidated income statements for the nine months ended September 30, 2021 and 2020 was $3,213 and $3,841, respectively.