XML 27 R16.htm IDEA: XBRL DOCUMENT
v3.24.3

Derivatives and Hedging Activities | 9 Months Ended
--- | ---
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activities | Derivatives and Hedging Activities 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 type, amount, sources, and duration of its debt funding 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 investments and borrowings. Cash Flow Hedges of Interest Rate Risk. The Company's objectives in using interest rate derivatives are to add stability to interest expense, to manage its exposure to interest rate movements and therefore manage its cash outflows as it relates to the underlying debt instruments. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable rate debt instruments. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate 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. The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company did not incur any ineffectiveness during the nine months ended September 30, 2024 and 2023. The following table summarizes the terms of our outstanding derivative financial instruments on the Company's balance sheet as of September 30, 2024 and December 31, 2023:
Derivative Type | Number of Instruments | Effective Date |  | Maturity Date |  |  |  | Notional Value |  | Fair Value of Asset/(Liability)
|  |  |  | September 30, 2024 |  | December 31, 2023
Term Loan Interest Rate Swap | 4 | 7/1/2022 |  | 1/31/2025 |  |  |  | $ | 300,000 |  |  | $ | 2,894 |  |  | $ | 9,471 |
Term Loan Forward Interest Rate Swap | 5 | 1/31/2025 |  | 1/31/2027 |  |  |  | 250,000 |  |  | (304) |  |  | — |
Trust Preferred Securities Forward Interest Rate Swap | 2 | 10/30/2024 |  | 10/30/2027 |  |  |  | 82,500 |  |  | (21) |  |  | — |
|  |  |  |  |  |  |  | $ | 632,500 |  |  | $ | 2,569 |  |  | $ | 9,471 |
During the next 12 months, the Company estimates that an additional $3,599 will be reclassified as a decrease in interest expense if the swaps remain outstanding. The table below presents the effect of the Company's derivative financial instruments on the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2024 and 2023:
Derivatives in Cash Flow |  | Amount of Gain Recognized in OCI on Derivatives September 30, |  | Amount of (Income) Loss Reclassified from Accumulated OCI into Income(1) September 30,
Hedging Relationships |  | 2024 |  | 2023 |  | 2024 |  | 2023
Interest Rate Swaps |  | $ | 1,540 |  |  | $ | 5,029 |  |  | $ | (8,442) |  |  | $ | (7,503) |
The Company's share of non-consolidated entity's interest rate cap |  | 152 |  |  | 235 |  |  | (215) |  |  | (1,088) |
Total |  | $ | 1,692 |  |  | $ | 5,264 |  |  | $ | (8,657) |  |  | $ | (8,591) |
(1) Amounts reclassified from accumulated other comprehensive income (loss) for the Company's interest rate swaps are included in interest expense and for the Company's share of non-consolidated entity's interest rate cap are reclassified to equity in earnings (losses) of non-consolidated entities within the unaudited condensed consolidated statements of operations. Total interest expense presented in the unaudited condensed consolidated statements of operations, in which the effects of cash flow hedges are recorded, was $50,624 and $32,502 for the nine months ended September 30, 2024 and 2023, respectively. The Company's agreements with the swap derivative counterparties contain provisions whereby if the Company defaults on the underlying indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default of the swap derivative obligation. As of September 30, 2024, the Company had not posted any collateral related to the agreements.

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