Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments

v3.23.1
Derivative Instruments
 3 Months Ended
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company entered into interest rate swap agreements with a total notional amount of $700 million with an effective date of December 31, 2018 (“Interest Rate Swap Agreements”) with a scheduled expiration date of December 31, 2023.
Prior to termination discussed herein, the Interest Rate Swap Agreements were determined to be effective hedging agreements. Effective February 18, 2022, the Company terminated the Interest Rate Swap Agreements. In connection with the termination of the Interest Rate Swap Agreements, the Company made a payment of $18.4 million to the swap counterparties. Following these terminations, $21.5 million of unrealized gains related to the terminated Interest Rate Swap Agreements included in accumulated other comprehensive income (loss) will be reclassified to earnings as reductions to interest expense through December 31, 2023.
The Company reclassified interest expense related to hedges of these transactions into earnings as follows:
Three Months Ended March 31,
2023 2022
(in thousands)
Reclassification of the effective portion of the gain on the Interest Rate Swap Agreements into interest expense
 $ —  $ 1,679 
Reclassification of unrealized gains related to terminated Interest Rate Swap Agreements into interest expense
 (2,527) (2,181)
Total reclassification adjustments included in earnings $ (2,527) $ (502)
The results of derivative activities are recorded in cash flows from operating activities on the condensed consolidated statements of cash flows.