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Derivative | 3 Months Ended
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Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 13. Derivative Interest Rate Cap On January 4, 2023, we entered into an interest rate cap agreement with an effective date of January 31, 2023. The interest rate cap manages our exposure to interest rate increases on $300 million in borrowings under the Term Loan B and provides us with the right to receive payment if the one-month SOFR exceeds 5.0% (“strike rate”). Beginning on February 28, 2023, we pay a fixed monthly deferred premium based on an annual rate of 0.3335% for the interest rate cap, which matures on January 31, 2025. We designated the interest rate cap as a cash flow hedge designed to hedge the variability of the SOFR-based interest payments on the Term Loan B. Changes in the fair value of the interest rate cap are recorded in “accumulated other comprehensive income (loss)” (“AOCI”) in the Condensed Consolidated Balance Sheets. Amounts accumulated in AOCI are reclassified to “interest expense, net” in the Condensed Consolidated Statements of Operations when the hedged item affects earnings. We recognized $0.8 million of unrealized losses in AOCI during the three months ended March 31, 2023 and approximately $4,000 was reclassified to interest expense. W e estimate that $1.1 million will be reclassified to earnings within the next 12 months. The fair value of the interest rate cap is as follows:
|  |  |  | March 31, |  |  | December 31, |
(in thousands) |  | Classification |  | 2023 |  |  | 2022 |
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |
Interest rate cap - short-term |  | Other current liabilities |  | $ | 356 |  |  | $ | — |
Interest rate cap - long-term |  | Other deferred items and liabilities |  |  | 284 |  |  |  | — |
Total derivatives designated as hedging instruments |  |  |  | $ | 640 |  |  | $ | — |
The fair value of the interest rate cap is determined using widely accepted valuation techniques and reflects the contractual terms of the interest rate cap including the period to maturity. While there are no quoted prices in active markets, our calculation uses observable market-based inputs, including interest rate curves. The interest rate cap is classified as Level 2 within the fair value hierarchy. Refer to Note 14 – Fair Value Measurements for related fair value disclosures.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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