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Derivative Instruments | 12 Months Ended
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Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | NOTE 8: DERIVATIVE INSTRUMENTS We had one interest rate swap arrangement with a notional amount of $100.0 million that had effectively fixed the remaining $100.0 million portion of the 2018 Term Loan prior to the prepayment. During the first quarter of 2023, we prepaid the 2018 Term Loan using proceeds from the $125.0 million 2023 Term Loan (see note 7). Subsequent to this transaction, our interest rate swap arrangement effectively fixed the interest rate on a $100.0 million portion of the 2023 Term Loan through the interest rate swap arrangement’s expiration date of July 21, 2023. During the first quarter of 2023, we entered into two interest rate swap arrangements with an aggregate notional amount of $125.0 million that effectively fixed the interest at 4.73% for the 2023 Term Loan beginning on July 21, 2023 through the 2023 Term Loan’s maturity date of January 10, 2025. The interest rate swap arrangement is recorded at fair value in accordance with GAAP, based on discounted cash flow methodologies and observable inputs. We record the effective portion of changes in fair value of the cash flow hedge in Other comprehensive income (loss). We assess the effectiveness of a cash flow hedge both at inception and on an ongoing basis. If a cash flow hedge is no longer expected to be effective, hedge accounting is discontinued. Hedge ineffectiveness of our cash flow hedges is recorded in earnings. The fair values of the interest rate swap as of December 31, 2023 and 2022, were as follows (in thousands):
| Aggregate Notional Amount | Effective Date |  | Fair Value
|  | Derivative Liabilities |
|  | December 31, |
Derivative Instrument | Maturity Date | 2023 |  | 2022 |
Interest rate swap | $ | 100,000 |  | March 31, 2017 | July 21, 2023 | $ | — |  |  | $ | 1,998 |  |
Interest rate swap | 75,000 |  | July 21, 2023 | January 10, 2025 | 740 |  |  | — |  |
Interest rate swap | 50,000 |  | July 21, 2023 | January 10, 2025 | 494 |  |  | — |  |
|  |  |  | $ | 1,234 |  |  | $ | 1,998 |  |
We record interest rate swaps on our consolidated balance sheets with prepaid expenses and other assets when in a net asset position, and with accounts payable and other liabilities when in a net liability position. The current interest rate swaps have been effective since inception. The gains or losses on the effective swaps are recognized in other comprehensive income, as follows (in thousands):
| Year Ending December 31,
| 2023 |  | 2022 |  | 2021
Unrealized (gain) loss on interest rate hedges | $ | (764) |  |  | $ | 2,819 |  |  | $ | 3,673 |
Amounts reported in Accumulated other comprehensive loss related to effective cash flow hedges will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the next twelve months, we estimate that an additional $1.2 million related to our two outstanding interest rate swap arrangements will be reclassified as a decrease to interest expense. The losses reclassified from Accumulated other comprehensive income into interest expense for the three years ended December 31, 2023, were as follows (in thousands):
| Year Ending December 31,
| 2023 |  | 2022 |  | 2021
Loss reclassified from accumulated other comprehensive income (loss) into interest expense | $ | 2,039 |  |  | $ | 2,039 |  |  | $ | 2,039 |
During the next twelve months, we estimate that an additional $2.0 million related to the previously settled interest rate swap arrangements will be reclassified as an increase to interest expense. We have agreements with each of our derivative counterparties that contain a provision whereby we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness. As of December 31, 2023, the fair value of derivative assets, including accrued interest, was $1.2 million and we did not have any derivatives in a liability position. As of December 31, 2023, we have not posted any collateral related to these agreements. Derivative instruments expose us to credit risk in the event of non-performance by the counterparty under the terms of the interest rate hedge agreement. We believe that we minimize our credit risk on these transactions by dealing with major, creditworthy financial institutions. We monitor the credit ratings of counterparties and our exposure to any single entity, thus minimizing our credit risk concentration.

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