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FINANCIAL DERIVATIVE INSTRUMENTS | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
FINANCIAL DERIVATIVE INSTRUMENTS | FINANCIAL DERIVATIVE INSTRUMENTS Commodity Pricing Risk As of September 30, 2024, the Company was party to commodity swap contracts for specific commodities with notional amounts of approximately $19.1 million. The Company uses commodity swap contracts to mitigate the risks associated with fluctuations in commodity prices impacting its cash flows related to inventory purchases from suppliers. The Company does not hedge all commodity price risk. At inception, the Company designated the commodity swap contracts as cash flow hedges. The contracts mature at specified monthly settlement dates and will be recognized into earnings through December 2024. The effective portion of the hedging transaction is recognized in Accumulated Other Comprehensive Income (Loss) (“AOCI”) and transferred to earnings when the forecasted hedged transaction takes place or when the forecasted hedged transaction is no longer probable to occur. Financial Statement Presentation As of September 30, 2024 and December 31, 2023, the fair value carrying amount of the Company’s derivative instruments were recorded as follows (in thousands):
|  |  |  | Asset / (Liability) Derivatives
|  | Balance Sheet Caption |  | September 30, 2024 |  | December 31, 2023
Derivatives designated as hedging instruments |  |  |  |  |  |
Commodity swap contracts |  | Prepaid expenses and other |  | $ | 485 |  |  | $ | 1,511 |
Commodity swap contracts |  | Accounts payable and Other accrued liabilities |  | (828) |  |  | (1,045) |
Total derivatives designated as hedging instruments |  |  |  | $ | (343) |  |  | $ | 466 |
The following table summarizes the gain or loss recognized in AOCI as of September 30, 2024 and December 31, 2023 and the amounts reclassified from AOCI into earnings for the three and nine months ended September 30, 2024 and 2023 (in thousands):
|  | Amount of (Loss) Gain Recognized in AOCI on Derivatives (Effective Portion, net of tax) |  | Location of Gain (Loss) Reclassified from AOCI into Earnings (Effective Portion) |  | Amount of Gain (Loss) Reclassified from AOCI into Earnings
|  | September 30, 2024 |  | December 31, 2023 |  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  |  |  |  | 2024 |  | 2023 |  | 2024 |  | 2023
Derivatives instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity swap contracts |  | $ | (514) |  |  | $ | 388 |  |  | Cost of sales |  | $ | (175) |  |  | $ | (2,285) |  |  | $ | (299) |  |  | $ | (2,168) |
Over the next 12 months, the Company expects to reclassify approximately $0.7 million of pretax deferred losses, related to the commodity swap contracts, from AOCI to cost of sales as inventory purchases are settled.

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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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