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Derivatives and Hedging
 6 Months Ended
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 assets1,565 798 
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 gain725 (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