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Derivative Instruments | 12 Months Ended
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Dec. 31, 2023
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. At December 31, 2023, we have interest rate swaps associated with $761.0 million of term loan debt. These cash flow hedges convert variable rates ranging from one-month SOFR plus 1.66% to 2.30%, to fixed rates ranging from 2.19% to 4.79% before patronage credits from lenders. At December 31, 2023, we also have $200.0 million of forward-starting interest rate swaps designated as cash flow hedg es for expected future debt refinances that require settlement on the stated maturity date. On September 15, 2022, we terminated $277.5 million of 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. 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%. The gross fair values of our cash flow derivative instruments at December 31, 2023 and December 31, 2022, were $129.1 million and $144.6 million, respectively, all of which were classified in Other assets, non-current on our Consolidated Balance Sheet s. 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 |  | 2023 |  |  | 2022 |  |  | 2021 |
Derivatives designated in cash flow hedging relationships: |  |  |  |  |  |  |
Interest rate contracts |  |  |  |  |  |  |  |  |  |  |
Income recognized in other comprehensive income, net of tax |  |  |  | $ | 14,716 |  |  | $ | 116,890 |  |  | $ | 26,564 |
Amounts reclassified from accumulated other comprehensive income to income, net of tax 1 |  | Interest expense, Net |  | $ | (18,905 | ) |  | $ | 1,125 |  |  | $ | 8,748 |
Interest expense, net |  |  |  | $ | 24,218 |  |  | $ | 27,400 |  |  | $ | 29,275 |
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. For the years ended December 31, 2023, 2022, and 2021, we amortized approximately $10.3 million, $3.1 million, and $0, respectively, of the off-market designated hedges which is included in other, net within operating activities in the Consolidated Statements of Cash Flows. 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, 2023, the amount of net gains expected to be reclassified into earnings in the next 12 months is approximately $17.2 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 rate at the time of net swap cash payments.

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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://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
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