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Derivatives

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Note 7. Derivatives

To reduce exposure to variability in expected future cash outflows on variable rate debt attributable to the changes in one-month LIBOR, the Company has historically entered into interest rate derivative instruments to economically offset a portion of this risk and may do so in the future. In June 2023, the Company transitioned the reference rate for its interest rate derivative agreements from one-month LIBOR to one-month SOFR.

As of June 30, 2024, the Company had the following outstanding derivatives that were not designated as a hedge in qualifying hedging relationships:

Product		Effective Date		Maturity Date		Notional		Rate
Interest rate swap(a)		June 30, 2023		February 28, 2026		$100.0 million		4.32%
Interest rate swap		December 29, 2023		December 31, 2026		$150.0 million		3.86%
Interest rate swap		March 1, 2024		December 31, 2026		$150.0 million		3.76%

(a) In conjunction with the June 2023 transition of the reference rate from LIBOR to SOFR, the fixed rate was reduced from 4.36% to 4.32%.

Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements; however, the Company has not elected to apply hedge accounting for these instruments.

The following is a summary of location and fair value of the financial positions recorded related to the derivative instruments (in thousands):

				Fair Value
Derivatives not designated as hedging instruments		Balance Sheet Location		As of June 30, 2024				As of December 31, 2023
Interest rate collars		Prepaid expenses and other current assets		$	—			$	1,986
Interest rate swaps		Accrued liabilities		$	—			$	1,576
Interest rate swaps		Prepaid expenses and other current assets		$	4,602			$	—

The following is a summary of location and amount of gains recorded related to the derivative instruments (in thousands):

				Gain
				Three Months Ended June 30,								Six Months Ended June 30,
Derivatives not designated as hedging instruments		Income Statement Location		2024				2023				2024				2023
Interest rate collars		Interest expense, net		$	—			$	1,204			$	951			$	769
Interest rate swaps		Interest expense, net		$	2,132			$	1,910			$	8,226			$	466

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- References

No definition available.

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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

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