Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Interest Rate Swap Agreements

The following table summarizes our interest rate swap agreements at December 31, 2019:

Interest Rate Swap Agreements	Maturity Date	Rate	Notional Value (in thousands)		Debt Instrument Hedged	Percentage of Term Loan Outstanding
December 31, 2019
Designated as cash flow hedge	June 1, 2023	2.81%	$	100,000	Term Loan	6%
Designated as cash flow hedge	June 1, 2025	2.87%		200,000	Term Loan	13%
Designated as cash flow hedge	June 1, 2024	2.81%		50,000	Term Loan	3%
Designated as cash flow hedge	June 1, 2025	2.87%		50,000	Term Loan	3%
Designated as cash flow hedge	June 1, 2025	2.85%		50,000	Term Loan	3%
			$	450,000		28%

Fair Values of Derivative Instrument and Respective Classification in Condensed Consolidated Balance Sheets

The following table summarizes the fair values and the respective classification in the Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019. The net amount of derivative liabilities can be reconciled to the tabular disclosure of fair value in Note 9:

		Liabilities
		September 30, 2020			December 31, 2019
Interest Rate Swap Agreements	Balance Sheet Classification	(in thousands)
Designated as cash flow hedges	Other non-current liabilities	$	-		$	(13,420	)
Designated as cash flow hedges	Accrued expenses		-			(7,827	)
Not designated as cash flow hedges	Liabilities subject to compromise		(35,925	)		-
		$	(35,925	)	$	(21,247	)

Schedule of Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss

The table below presents the effect of cash flow hedge accounting on accumulated other comprehensive loss for the three and nine months ended September 30, 2020 and 2019:

	Amount of Loss Recognized in Other Comprehensive Loss
	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Derivatives in Hedging Relationships	(in thousands)
Designated as Cash Flow Hedges
Interest rate swap agreements	$	-	$	4,542	$	16,285	$	22,406

		Amount of Loss Reclassified from Accumulated Other Comprehensive Loss
Derivatives in	Location of Loss	Three Months Ended September 30,				Nine Months Ended September 30,
Hedging	Recognized on	2020		2019		2020		2019
Relationships	Derivative	(in thousands)
Designated as Cash Flow Hedges
Interest rate swap agreements	Interest expense, net	$	-	$	712	$	38,785	$	1,303

Schedule of Effect of Derivative Financial Instruments on Condensed Consolidated Statements of Loss

The table below presents the effect of our derivative financial instruments on the Condensed Consolidated Statements of Loss in the three and nine months ended September 30, 2020 and 2019:

	Location of Loss on Derivative
	Interest expense, net
	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in thousands)
Total Interest Expense presented in the Statements of Loss in which the effects of cash flow hedges are recorded	$	1,714	$	26,894	$	84,637	$	79,896
Effects of cash flow hedging:
Loss on Hedging Relationships
Interest rate swap agreements
Amount of loss reclassified from accumulated other comprehensive loss to earnings	$	-	$	712	$	38,785	$	1,303

Schedule of Effect of Derivative Financial Instruments Not Designated as Hedging Instruments

The table below presents the effect of our derivative financial instruments that were not designated as cash flow hedging instruments in the three and nine months ended September 30, 2020 and 2019

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2020		2019		2020		2019
Derivatives Not Designated as ASC 815-20 Cash Flow Hedging Relationships	Location of (Gain) Loss Recognized	(in thousands)
Interest rate swap agreements	Interest expense, net	$	1,307	$	-	$	1,247	$	-

Covia Holdings Corp 10-Q