XML 33 R19.htm IDEA: XBRL DOCUMENT
v3.22.4

Derivative Instruments | 12 Months Ended
--- | ---
Dec. 31, 2022
Derivative Instrument Detail [Abstract] |
Derivative Instruments | NOTE 10. DE RIVATIVE INSTRUMENTS From time to time, we enter into derivative financial instruments to manage certain cash flow and fair value risks. Derivatives designated and qualifying as a hedge of the exposure to variability in the cash flows of a specific asset or liability that is attributable to a particular risk, such as interest rate risk, are considered cash flow hedges. All our cash flow hedges are expected to be highly effective in achieving offsetting cash flows attributable to the hedged interest rate risk through the term of the hedges. Prior to our merger with CatchMark, we held $567.5 million of one-month LIBOR-indexed forward-starting interest rate swaps designated as cash flow hedges that were entered into in March 2020, to effectively hedge the variability in future benchmark interest payments attributable to changes in interest rates on $567.5 million of expected future debt refinances through January 2029, with expected interest payments through January 2039, by converting the benchmark interest rate. On September 15, 2022, we terminated $277.5 million of these forward-starting interest rate swaps and transferred the value realized from their termination into two new swaps to hedge the variability in future cash flows on the SOFR-indexed New Term Loans of $277.5 million. These two new one-month SOFR-indexed interest rate swaps with a notional amount of $138.75 million each effectively fix the interest rates at 2.50% and 2.66% on the New Term Loans before patronage credits from lenders. See Note 9: Debt for additional information. At December 31, 2022, we have $250.0 million of remaining forward-starting interest rate swaps designated as cash flow hedges for expected future debt refinances that require settlement on the stated maturity date. Additionally, in connection with the CatchMark merger, we acquired two LIBOR-indexed interest rate swaps with a combined notional amount of $275.0 million which were used to fix the interest rates on CatchMark’s long-term debt. These interest rate swaps had a fair value of $19.2 million at the date of the CatchMark merger. We terminated these interest rate swaps and transferred the value realized from their termination into an existing $150.0 million LIBOR-indexed interest rate swap associated with a $150.0 million term loan maturing January 1, 2029, resulting in the reduction of the LIBOR-indexed swap rate from 2.71% to 0.49%. In November 2022, we entered into bilateral agreements with our swap counterparties to transition all our remaining LIBOR-indexed interest rate swap agreements to SOFR. At December 31, 2022, we have interest rate swaps associated with $721.0 million of term loan debt. These cash flow hedges convert variable rates ranging from one-month SOFR plus 1.68% to 2.30%, to fixed rates ranging from 2.21% to 4.79%. The gross fair values of our cash flow derivative instruments on our Consolidated Balance Sheets as of December 31 are as follows:
|  |  |  | Asset Derivatives |  |  |  |  | Liability Derivatives |
(in thousands) |  | Location |  | 2022 |  |  | 2021 |  |  | Location |  | 2022 |  |  | 2021 |
Derivatives designated in cash flow hedging relationships: |  |  |  |  |  |  |  |  |
Interest rate contracts |  | Other assets, current 1 |  | $ | — |  |  | $ | 2,191 |  |  | Accounts payable and accrued liabilities 1 |  | $ | — |  |  | $ | — |
Interest rate contracts |  | Other assets, non-current |  |  | 144,583 |  |  |  | 31,306 |  |  | Other long-term obligations |  |  | — |  |  |  | 24,060 |
|  |  |  | $ | 144,583 |  |  | $ | 33,497 |  |  |  |  | $ | — |  |  | $ | 24,060 |
1 | Derivative instruments that mature within one year, as a whole, are classified as current.
The following table details the effect of derivatives on our Consolidated Statements of Operations:
|  |  |  | Year Ended December 31, |
(in thousands) |  | Location |  | 2022 |  |  | 2021 |  |  | 2020 |
Derivatives designated in cash flow hedging relationships: |  |  |  |  |  |  |
Interest rate contracts |  |  |  |  |  |  |  |  |  |  |
Income (loss) recognized in other comprehensive income, net of tax |  |  |  | $ | 116,774 |  |  | $ | 26,206 |  |  | $ | (14,632 | )
Amounts reclassified from accumulated other comprehensive income (loss), net of tax 1 |  | Interest expense |  | $ | (1,241 | ) |  | $ | (9,106 | ) |  | $ | (7,451 | )
Interest expense, net |  |  |  | $ | 27,400 |  |  | $ | 29,275 |  |  | $ | 29,463 |
1 | Realized gains and losses on interest rate contracts consist of realized net cash received or paid and interest accruals on the interest rate swaps during the periods in addition to amortization of amounts out of other comprehensive income related to certain terminated hedges and adjustments to interest expense resulting from amortization of inception value of certain off-market designated hedges. Net cash received or paid is included in the supplemental cash flow information within interest, net of amounts capitalized in the Consolidated Statements of Cash Flows.
At December 31, 2022, the amount of net gains expected to be reclassified into earnings in the next 12 months is approximately $16.8 million. However, this expected amount to be reclassified into earnings is subject to volatility as the ultimate amount recognized in earnings is based on the SOFR ra te at the time of net swap cash payments.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentDetailAbstract
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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://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 https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration