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Note 18 - Subsequent Event - Derivatives
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Subsequent Events [Text Block]
 

18.

Subsequent Event - Derivatives

 

On February 28, 2023, the Company entered into an interest rate swap contract to improve the predictability of cash flows from interest payments related to our variable, SOFR based debt. The swap contract has initial notional amount of $33.4 million and matures on December 22, 2025. This swap contract converts the SOFR-based variable portion of the interest payable under the Credit Agreement into fixed-rate debt at an annual rate of 4.75%. The swap contract does not impact the additional interest related to the applicable interest rate margin as discussed above in Note 11 Long-Term Debt. The interest rate swap is considered an effective cash flow hedge, and as a result, the net gains or losses on such instrument are reported as a component of other comprehensive income (loss) in the consolidated financial statements and are reclassified as net income when the underlying hedged interest impacts earnings. A qualitative and quantitative assessment over the hedge effectiveness is performed on a quarterly basis unless facts and circumstances indicate that the hedge may no longer be highly effective.