XML 26 R14.htm IDEA: XBRL DOCUMENT
v3.23.2

Derivative Financial Instruments | 6 Months Ended
--- | ---
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Objective of Using Derivatives 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 risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable 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. Such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. For derivatives designated, and that qualify, as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (Loss) ("AOCI") and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. As of June 30, 2023, the Company had 14 outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:
EXPIRATION DATE | AMOUNT | WEIGHTED AVERAGE RATE
January 15, 2024 | $ | 200,000 |  | 1.21 | %
May 1, 2026 | 100,000 |  | 2.15 | %
June 1, 2026 | 150,000 |  | 3.83 | %
December 1, 2026 | 150,000 |  | 3.84 | %
June 1, 2027 | 150,000 |  | 4.13 | %
December 1, 2027 | 250,000 |  | 3.79 | %
| $ | 1,000,000 |  | 3.17 | %
Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company's derivative financial instruments, as well as their classification on the Condensed Consolidated Balance Sheet as of June 30, 2023.
| BALANCE AT JUNE 30, 2023
In thousands | BALANCE SHEET LOCATION | FAIR VALUE
Derivatives designated as hedging instruments |  |
Interest rate swaps | Other liabilities | $ | (1,248) |
Interest rate swaps | Other assets | $ | 16,046 |
Total derivatives designated as hedging instruments |  | $ | 14,798 |
Tabular Disclosure of the Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2023 and 2022 related to the Company's outstanding interest rate swaps.
| (GAIN)/LOSS RECOGNIZED IN AOCI ON DERIVATIVE three months ended June 30, |  | (GAIN)/LOSS RECLASSIFIED FROM AOCI INTO INCOME three months ended June 30,
In thousands | 2023 | 2022 | 2023 | 2022
Interest rate swaps | $ | (21,523) |  | $ | (1,663) |  | Interest expense | $ | (3,568) |  | $ | 674 |
Settled treasury hedges | — |  | — |  | Interest expense | 107 |  | 107 |
Settled interest rate swaps | — |  | — |  | Interest expense | 42 |  | 42 |
| $ | (21,523) |  | $ | (1,663) |  | Total interest expense | $ | (3,419) |  | $ | 823 |
| (GAIN)/LOSS RECOGNIZED IN AOCI ON DERIVATIVE six months ended June 30, |  | (GAIN)/LOSS RECLASSIFIED FROM AOCI INTO INCOME six months ended June 30,
In thousands | 2023 | 2022 | 2023 | 2022
Interest rate swaps | $ | (12,981) |  | $ | (6,822) |  | Interest expense | $ | (6,000) |  | $ | 1,612 |
Settled treasury hedges | — |  | — |  | Interest expense | 213 |  | 213 |
Settled interest rate swaps | — |  | — |  | Interest expense | 84 |  | 84 |
| $ | (12,981) |  | $ | (6,822) |  | Total interest expense | $ | (5,703) |  | $ | 1,909 |
The Company estimates that an additional $14.4 million related to active interest rate swaps will be reclassified from AOCI as a decrease to interest expense over the next 12 months, and that an additional $0.6 million related to settled interest rate swaps will be amortized from AOCI as an increase to interest expense over the next 12 months. Credit-risk-related Contingent Features The Company's agreements with each of its derivative counterparties contain a cross-default provision under which the Company could be declared in default of its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of June 30, 2023, the fair value of derivatives in a net asset position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $15.4 million. As of June 30, 2023, the Company had not posted any collateral related to these agreements and was not in breach of any agreement.

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

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration