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Derivatives and Hedging | 6 Months Ended
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Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging | Derivatives and Hedging During the second quarter of 2023, Shentel entered into pay fixed (2.90%), receive variable (one-month term SOFR) interest rate swaps totaling $150.0 million of notional principal (the “Swaps”). The Swaps contain monthly payment terms that became effective in May 2024, which extend through their maturity dates in June 2026. The Swaps are designated as cash flow hedges, representing 50% of the Company’s outstanding debt under Term Loan A-1 and Term Loan A-2. The Company uses the Swaps to manage its exposure to interest rate risk for its long-term variable-rate Term Loans. The Swaps were determined to be highly effective hedges and therefore all change in the fair value of the Swaps was recognized in other comprehensive income. The table below presents the fair value of the Swaps as well as their classification in the unaudited condensed consolidated balance sheets. The fair value of these instruments was estimated using an income approach and observable market inputs (Level 2):
(in thousands) | June 30, 2024 |  | December 31, 2023
Balance sheet line item of derivative financial instruments: |  |  |
Prepaid expenses and other | $ | 2,985 |  |  | $ | 1,443 |
Deferred charges and other assets | 1,565 |  |  | 798 |
Total derivatives designated as hedging instruments | $ | 4,550 |  |  | $ | 2,241 |
The table below summarizes changes in accumulated other comprehensive income by component:
(in thousands) |  | Gain on Swaps |  | Income tax expense |  | Accumulated Other Comprehensive Income, net of taxes
Balance, March 31, 2024 |  | $ | 4,361 |  |  | $ | (1,099) |  |  | $ | 3,262 |
Net change in unrealized gain |  | 725 |  |  | (154) |  |  | 571 |
Amounts reclassified to interest expense |  | (536) |  |  | 108 |  |  | (428) |
Net current period other comprehensive income (loss) |  | 189 |  |  | (46) |  |  | 143 |
Balance, June 30, 2024 |  | $ | 4,550 |  |  | $ | (1,145) |  |  | $ | 3,405 |
(in thousands) |  | Gain on Swaps |  | Income tax expense |  | Accumulated Other Comprehensive Income, net of taxes
Balance, December 31, 2023 |  | $ | 2,241 |  |  | $ | (573) |  |  | $ | 1,668 |
Net change in unrealized gain |  | 2,845 |  |  | (680) |  |  | 2,165 |
Amounts reclassified to interest expense |  | (536) |  |  | 108 |  |  | (428) |
Net current period other comprehensive income (loss) |  | 2,309 |  |  | (572) |  |  | 1,737 |
Balance, June 30, 2024 |  | $ | 4,550 |  |  | $ | (1,145) |  |  | $ | 3,405 |
(in thousands) |  | Gain on Swaps |  | Income tax expense |  | Accumulated Other Comprehensive Income, net of taxes
Balance, March 31, 2023 |  | $ | — |  |  | $ | — |  |  | $ | — |
Net change in unrealized gain |  | 2,866 |  |  | (739) |  |  | 2,127 |
Balance, June 30, 2023 |  | $ | 2,866 |  |  | $ | (739) |  |  | $ | 2,127 |
(in thousands) |  | Gain on Swaps |  | Income tax expense |  | Accumulated Other Comprehensive Income, net of taxes
Balance, December 31, 2022 |  | $ | — |  |  | $ | — |  |  | $ | — |
Net change in unrealized gain |  | 2,866 |  |  | (739) |  |  | 2,127 |
Balance, June 30, 2023 |  | $ | 2,866 |  |  | $ | (739) |  |  | $ | 2,127 |

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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 + Details
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