Table of Contents Core Logic, Inc. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2020, 2019 and 2018 Debt Issuance Costs 7.55% Senior Debentures Interest Rate Swaps 71 As a result of our Swap activity, for the year ended December 31, 2020, on a pre-tax basis, we recognized interest expense of $21.3 million. For the years ended December 31, 2019 and 2018, on a pre-tax basis, we recognized interest income of $3.2 million and $3.5 million, respectively. Estimated net losses included in accumulated other comprehensive loss related to the For the years ended December 31, 2020, 2019 and 2018, an unrealized loss of $25.0 million (net of $8.3 million in deferred taxes), an unrealized loss of $33.9 million (net of $11.3 million in deferred taxes), and an unrealized loss of $10.4 million (net of $3.4 million in deferred taxes), respectively, were recognized in other comprehensive (loss)/income related to the Swaps. We have designated the Swaps as cash flow hedges. The estimated fair value of these cash flow hedges are recorded in prepaid expenses and other current assets and/or accounts payable and other accrued expenses, as well as other assets and/or other liabilities in the accompanying consolidated balance sheets. As of December 31, 2020, the estimated fair value of these cash flow hedges resulted in a liability of $80.4 million and an asset of less than $0.1 million. As of December 31, 2019, we recorded an asset of $0.6 million and a liability of $47.7 million. As of December 31, 2020, the Swaps have a combined remaining notional balance of $1.2 billion, a weighted average fixed interest rate of 2.39% (rates range from 1.03% to 2.98%) and scheduled terminations through December 2025. As previously indicated, notional balances under our Swaps are scheduled to increase and decrease over their contract lengths based on our expectations of the level of variable debt to be in effect in future periods. Currently, we have scheduled notional amounts of $1.2 billion through September 2021, then $1.1 billion through March 2022, $1.0 billion through August 2022 and approximately $500.0 million thereafter until December 2025. Approximate weighted average fixed interest rates for the aforementioned periods are 2.66%, 2.78%, 2.77%, and 2.64%, respectively. We have entered into amortizing interest rate swaps (the "Swaps") in order to convert a portion of our interest rate exposure on the Credit Agreement floating rate borrowings from variable to fixed. Under the Swaps, we agree to exchange floating rate for fixed rate interest payments periodically over the life of the agreement. The floating rates in the Swaps are based on the one-month LIBOR. The notional balances, terms and maturities of the Swaps are designed to have the effect of fixing the rate of interest on at least 50% of the principal balance of our senior term debt. In April 1998, we issued $100.0 million in aggregate principal amount of 7.55% senior debentures due 2028. In April 2010, we commenced a cash tender offer for these debentures and also solicited consent from the holders thereof to expressly affirm that the Separation would not conflict with the terms of the debentures. In April 2010, we announced that valid consents were tendered representing over 50.0% of the outstanding debentures. Accordingly, we received the requisite approvals from debenture holders and amended the related indentures. The indentures governing these debentures, as amended, contain limited restrictions on the Company. During the year ended December 31, 2020, we did not make any repurchases on our debentures. For the years ended December 31, 2020, 2019, and 2018, $4.9 million, $5.1 million and $5.4 million, respectively, were expensed in the accompanying consolidated statement of operations related to the amortization of debt issuance costs. In connection with the amendment of the Credit Agreement in May 2019, we incurred approximately $9.7 million of debt issuance costs, of which $9.6 million were capitalized within long-term debt, net of current in the accompanying consolidated balance sheets. In addition, when we amended the Credit Agreement, we wrote-off previously unamortized debt issuance costs of $1.5 million within gain/(loss) on investments and other, net, in the accompanying consolidated statements of operations, which resulted in $14.6 million of remaining previously unamortized costs. We will amortize all of these costs over the term of the Credit Agreement. 4.00:1.00 starting with the fiscal quarter ending on September 30, 2021, followed by a final step down to 3.75:1.00 starting with the fiscal quarter ending on September 30, 2022) and (ii) a minimum interest coverage ratio of at least 3.00:1.00. At December 31, 2020, we had borrowing capacity of $450.0 million under the Revolving Facility and were in compliance with all of our covenants under the Credit Agreement.