Financial Instruments

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]


11.			FINANCIAL INSTRUMENTS

Interest Rate Derivative—During 2022, we utilized a swap arrangement to hedge against interest rate variability associated with $200,000 of the Term Loan Facility until the swap contract expired on December 12, 2022. The Company had designated its interest rate swap as a cash flow hedging derivative and changes in fair value were recognized in other comprehensive income (loss) (“OCI”) until the underlying hedged item was recognized in earnings.

Derivatives Disclosures

Fair Value—Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows:

• Level 1—Fair value is based on quoted prices in active markets.

• Level 2—Fair value is based on internally developed models that use, as their basis, readily observable market parameters. Our derivative positions are classified within level 2 of the valuation hierarchy as they are valued using quoted market prices for similar assets and liabilities in active markets. These level 2 derivatives are valued utilizing an income approach, which discounts future cash flow based on current market expectations and adjusts for credit risk.

• Level 3—Fair value is based on internally developed models that use, as their basis, significant unobservable market parameters. The Company did not have any level 3 classifications at December 31, 2022 or December 31, 2021.

The following table presents the fair value of the interest rate derivative by valuation hierarchy and balance sheet classification:


	December 31, 2022								December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total





Other current liabilities	$	—	$	—	$	—	$	—	$	—	$	(2,438)	$	—	$	(2,438)

OCI—The following table presents the total value recognized in OCI and reclassified from AOCI into earnings during the years ending December 31, 2022 and 2021 for derivatives designated as cash flow hedges:


	Year Ended December 31, 2022			Year Ended December 31, 2021
		Before Tax Amount		Tax Amount		Net of Tax Amount		Before Tax Amount		Tax Amount		Net of Tax Amount
Net gain (loss) recognized in OCI		$	2,132	$	(487)	$	1,645	$	445	$	(102)	$	343
Net amount reclassified from AOCI into earnings		103		(25)		78		4,141		(943)		3,198
Change in other comprehensive income		$	2,235	$	(512)	$	1,723	$	4,586	$	(1,045)	$	3,541