XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Note 12 - Derivatives | 3 Months Ended
--- | ---
Mar. 31, 2024
Notes to Financial Statements |
Derivatives and Fair Value [Text Block] | 12. Derivatives Derivative Instruments & Hedging Activities The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company may use derivatives to manage exposures that arise from changes in interest rates and limits the risk by following established risk management policies and procedures including the use of derivatives. On January 2, 2024, the Company entered into 21 interest rate swap agreements with notional amounts aggregating to $510.0 million. The interest rate swap agreements are designated as cash flow hedges and are held by the Company to reduce the impact of changes in interest rates on variable rate debt. The differential between fixed and variable rates to be paid or received is accrued, as interest rates change, and recognized as interest expense in the Company’s Condensed Consolidated Statements of Operations. The changes in fair value of the interest rate swaps are included within the Accumulated other comprehensive income/(loss) ("AOCI") on the Company’s Condensed Consolidated Balance Sheets, and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. As of March 31, 2024, the Company expects approximately $6.1 million of accumulated comprehensive income on derivative instruments to be reclassified into earnings as a reduction to interest expense during the next 12 months. The interest rate swaps are measured at fair value using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company classifies the interest rate swaps as Level 2 and are measured on a recurring basis. As of March 31, 2024, all interest rate swaps were deemed effective and are therefore included within Other assets on the Company’s Condensed Consolidated Balance Sheets. The following table summarizes the terms and fair value of the Company’s derivative financial instruments as of March 31, 2024 (amounts in thousands):
Instrument | Number of Swap Agreements | Associated Debt Instrument | Maturity Date |  | Notional Amount * |  | Fair Value as of March 31, 2024
Interest rate swap | 1 | $200.0 Million Term Loan | Jan-29 | $ | 200,000 | $ | 2,820
Interest rate swaps | 3 | $50.0 Million Term Loan | Nov-26 |  | 50,000 |  | 506
Interest rate swaps | 3 | $100.0 Million Term Loan | Feb-27 |  | 100,000 |  | 1,059
Interest rate swaps | 7 | $50.0 Million Term Loan | Aug-27 |  | 50,000 |  | 616
Interest rate swaps | 7 | $110.0 Million Term Loan | Feb-28 |  | 110,000 |  | 1,458
|  |  |  | $ | 510,000 | $ | 6,459
* These interest rate swap agreements have an effective date of January 2, 2024 and utilize a 1-month SOFR CME index. The table below details the location in the financial statements of the gain/(loss) recognized on interest rate swaps designated as cash flow hedges for the three months ended March 31, 2024 (amounts in thousands):
|  | Three Months Ended March 31, 2024
Amount of gain/(loss) recognized in AOCI on interest rate swaps | $ | 8,536
Amount of gain/(loss) reclassified from AOCI into income as Interest expense | $ | 2,077
Total amount of Interest expense presented in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are being recorded | $ | 74,565
The Company has interests in certain unconsolidated joint ventures, which have interest rate swaps. As of March 31, 2024, the Company's share of the change in fair value of the cash flow hedges for interest payments was $3.8 million, which is included within Accumulated other comprehensive income on the Company’s Condensed Consolidated Balance Sheets.

X
- Definition The entire disclosure for derivatives and fair value of assets and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent + Details
Name: | us-gaap_DerivativesAndFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration