XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Derivatives and Hedging Activities | 9 Months Ended
--- | ---
Sep. 30, 2022
Derivatives and Hedging Activities [Abstract] |
Derivatives and Hedging Activities |
9. | Derivatives and Hedging Activities
Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2022, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense/income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense/income as interest payments are made/received on the Company’s variable-rate debt. During the next twelve months, the Company estimates that an additional $8.2 million will be reclassified as a reduction to interest expense. As of September 30, 2022 and December 31, 2021, the Company had four outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk with a total notional amount of $200 million. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet:
|  |  |  | Fair Values of Derivative Instruments |
Derivatives in Cash flow Hedging Relationships: |  | Balance Sheet Location |  | September 30, 2022 |  |  | December 31, 2021 |
Interest Rate Swap - Asset |  | Prepaid expenses and other |  | $ | 8,178 |  |  | $ | 557 |
Interest Rate Swap - Asset |  | Other assets |  | $ | 12,990 |  |  | $ | 6,033 |
Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income The tables below present the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income.
|  | Amount of Gain (Loss) Recognized in OCI on Derivatives |
|  | Three Months Ended |  |  | Nine Months Ended |
Derivatives in Cash flow |  | September 30, |  |  | September 30, |
Hedging Relationships: |  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Interest Rate Swaps |  | $ | 5,832 |  |  | $ | 32 |  |  | $ | 15,903 |  |  | $ | 3,133 |
|  |  |  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income |
|  |  |  | Three Months Ended |  |  | Nine Months Ended |
Derivatives in Cash flow |  | Income Statement |  | September 30, |  |  | September 30, |
Hedging Relationships: |  | Location |  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Interest Rate Swaps |  | Other income (expense), net |  | $ | 1,040 |  |  | $ | (45 | ) |  | $ | 1,323 |  |  | $ | (110 | )

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration