Annual report pursuant to Section 13 and 15(d)

Derivative Instruments

v3.24.0.1
Derivative Instruments
 12 Months Ended
Dec. 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, an effective date of December 31, 2018 (“Interest Rate Swap Agreements”), and 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) was 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:

Year Ended December 31,
2023 2022 2021
(in thousands)
Reclassification of the effective portion of the gain on the Interest Rate Swap Agreements into interest expense $ —  $ 1,679  $ 19,723 
Reclassification of unrealized gains related to terminated Interest Rate Swap Agreements into interest expense (1)
(8,849) (12,634) — 
Total reclassification adjustments included in earnings $ (8,849) $ (10,955) $ 19,723 
(1) Includes reclassification to earnings as a reduction to interest expense of unrealized gains included in accumulated other comprehensive income (loss) on the consolidated balance sheet related to the terminated Interest Rate Swap Agreements. The unrealized gains have been fully reclassified to earnings as of December 31, 2023.
The results of derivative activities are recorded in cash flows from operating activities on the consolidated statements of cash flows.