EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (12)COMPREHENSIVE INCOME (13)DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES During the third quarter of 2017, 282 shares were granted to a newly elected non-employee Director subject only to continued service as of the vesting date. The shares, which have a grant date fair value of $88.86 per share, vested 25% on each of September 8, 2018, 2019 and 2020, and will vest 25% on September 8, 2021. The shares are being expensed on a straight-line basis over the remaining service period. As of the vesting date, the fair value of shares that vested during 2020, 2019 and 2018 was $9,000, $9,000 and $7,000, respectively. Stock-based compensation expense for directors was $897,000, $727,000 and $1,134,000 for 2020, 2019 and 2018, respectively. Total Comprehensive Income  is comprised of net income plus all other changes in equity from non-owner sources and is presented on the Consolidated Statements of Income and Comprehensive Income. The components of Accumulated other comprehensive income (loss)  for 2020, 2019 and 2018 are presented in the Company’s Consolidated Statements of Changes in Equity and are summarized below. See Note 13 for information regarding the Company’s interest rate swaps. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risk, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its debt funding and, to a limited extent, the use of derivative instruments. Specifically, the Company has entered into derivative instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company's derivative instruments, described below, are used to manage differences in the amount, timing and duration of the Company's known or expected cash payments principally related to certain of the Company's borrowings. The Company's objective in using interest rate derivatives is to change variable interest rates to fixed interest rates by using interest rate swaps. Interest rate swaps designated as cash flow hedges involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed rate payments over the life of the agreements without exchange of the underlying notional amount.  As of December 31, 2020, EastGroup had five interest rate swaps outstanding, all of which are used to hedge the variable cash flows associated with unsecured loans. All of the Company's interest rate swaps convert the related loans' LIBOR rate components to effectively fixed interest rates, and the Company has concluded that each of the hedging relationships is highly effective. The changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in  Other comprehensive income (loss)  and is subsequently reclassified into earnings through interest expense as interest payments are made in the period that the hedged forecasted transaction affects earnings. Amounts reported in  Accumulated  o ther comprehensive income (loss)  related to derivatives will be reclassified to  Interest expense  as interest payments are made or received on the Company's variable rate debt. The Company estimates that an additional $4,026,000 will be reclassified from  Accumulated other comprehensive income (loss)  as an increase to  Interest expense  over the next twelve months. The Company's valuation methodology for over-the-counter (“OTC”) derivatives is to discount cash flows based on Overnight Index Swap (“OIS”) rates. Uncollateralized or partially-collateralized trades are discounted at OIS rates, but include appropriate economic adjustments for funding costs (i.e., a LIBOR-OIS basis adjustment to approximate uncollateralized cost of funds) and credit risk. The Company calculates its derivative values using mid-market prices. 76 Years Ended December 31, 2020 2019 2018 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): (In thousands) Balance at beginning of year  $ 2,807 6,701  5,348  Change in fair value of interest rate swaps - cash flow hedges (13,559) (3,894) 1,353  Balance at end of year  $ (10,752) 2,807  6,701 