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Derivatives and Hedging

12 Months Ended

Dec. 31, 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 accumulated other comprehensive income.

The table below presents the fair value of the Swaps as well as their classification in the consolidated balance sheets. The fair value of these instruments was estimated using an income approach and observable market inputs (Level 2):

(in thousands)			December 31, 2024						December 31, 2023
Balance sheet line items containing derivative financial instruments:
Prepaid expenses and other			$	1,766					$	1,443
Deferred charges and other assets			721						798
Total fair value of derivatives designated as hedging instruments			$	2,487					$	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 as of December 31, 2023						$	2,241					$	(573)					$	1,668
Net change in unrealized gain						2,420						(570)						1,850
Amounts reclassified to interest expense						(2,174)						509						(1,665)
Net current period other comprehensive income (loss)						246						(61)						185
Balance as of December 31, 2024						$	2,487					$	(634)					$	1,853

(in thousands)						Gain on Swaps						Income tax expense						Accumulated Other Comprehensive Income, net of taxes
Balance as of December 31, 2022						$	—					$	—					$	—
Net change in unrealized gain						2,241						(573)						1,668
Balance as of December 31, 2023						$	2,241					$	(573)					$	1,668

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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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