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Derivative Instruments | 9 Months Ended
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Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments |
7. | Derivative Instruments
The Company is exposed to certain market risks relating to its ongoing business operations. From time to time, the Company enters into derivative instrument arrangements to manage various risks including interest rate risk. Interest rate swap contracts The Company has entered into interest rate swap contracts to manage its exposure to changes in interest rates. Such contracts are intended to economically hedge the LIBOR component of future interest payments associated with outstanding borrowings under the Company’s Amended and Restated Credit Agreement. A summary of the Company’s interest rate swap contracts with a collective notional amount of $2.3 billion outstanding as of September 30, 2021 is as follows:
|  | Contract End Date |  | Fixed Interest Rates 1 |  | Notional Amount at inception (in thousands) |  |
|  | December 2021 |  | 0.743% |  | $ | 485,000 |  |  |
|  | December 2022 |  | 2.204% |  | $ | 300,000 |  |  |
|  | March 2023 |  | 1.954% - 2.413% |  | $ | 450,000 |  |  |
|  | December 2023 |  | 1.862% |  | $ | 200,000 |  |  |
|  | May 2024 |  | 0.435% - 0.440% |  | $ | 300,000 |  |  |
|  | May 2025 |  | 0.678% |  | $ | 300,000 |  |  |
|  | May 2026 |  | 0.909% - 0.910% |  | $ | 300,000 |  |  |
1 Fixed interest rates payable by WEX. Counterparties pay floating rate equal to the one-month USD LIBOR.
The following table presents information on the location and amounts of gains and losses from interest rate swap contract derivatives:
(In thousands) |  |  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in the Statement of Operations |  | 2021 |  | 2020 |  | 2021 |  | 2020
Interest rate swap contracts – unrealized portion |  | Net unrealized gain (loss) on financial instruments |  | $ | 6,527 |  |  | $ | 3,774 |  |  | $ | 20,008 |  |  | $ | (32,722) |
Interest rate swap contracts – realized portion |  | Financing interest expense |  | $ | (7,037) |  |  | $ | (5,438) |  |  | $ | (18,575) |  |  | $ | (10,336) |
Derivative instruments and their related gains and losses are reported within cash flows from operating activities within the condensed consolidated statements of cash flows. See Note 12, Fair Value, for more information regarding the valuation of the Company’s derivatives.

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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