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Derivatives

9 Months Ended

Sep. 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 September 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%
Interest rate swap		August 31, 2024		December 31, 2026		$160.0 million		3.72%

(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 September 30, 2024				As of December 31, 2023
Interest rate collars		Prepaid expenses and other current assets		$	—			$	1,986
Interest rate swaps		Accrued liabilities		$	4,984			$	1,576

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

				Gain (Loss)
				Three Months Ended September 30,								Nine Months Ended September 30,
Derivatives not designated as hedging instruments		Income Statement Location		2024				2023				2024				2023
Interest rate collars		Interest expense, net		$	—			$	109			$	951			$	878
Interest rate swaps		Interest expense, net		$	(8,171	)		$	857			$	55			$	1,323

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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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