Derivative instruments and Hedges Activities

12 Months Ended

Dec. 31, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative instruments and Hedges Activities

NOTE 12 - DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company uses interest rate swap arrangements (the “Swaps”) to manage or hedge its interest rate risk. Notwithstanding the terms of the Swaps, the Company is ultimately obligated for all amounts due and payable under the Credit Facility. The Company does not use such instruments for speculative or trading purposes.

The Company designated the Swaps as cash flow hedges. Derivative instruments are recorded on the consolidated balance sheets at fair value. Unrealized gains and losses on derivatives designated as cash flow hedges are reported in other comprehensive income (loss) (“AOCI”) and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. Management intends that the Swaps remain effective and, on a quarterly basis, evaluates them to determine their effectiveness or ineffectiveness and records the change in fair value as an adjustment to other comprehensive income or loss.

A summary of Swaps designated as cash flow hedges as of December 31, 2021 are as follows:

			Dates of Effected Cash Flows
Date of Interest Rate Swap Agreement	Notional Amount ($million)	Paid Fixed Interest Rate%	Beginning	Ending
September 30, 2016 (1)	$100.0	-	January 31, 2018	January 31, 2023
August 31, 2017	$25.0	1.8475%	August 31, 2018	August 31, 2023
August 8, 2018	$50.0	2.8540%	August 31, 2018	August 31, 2023
August 8, 2018	$25.0	2.8510%	August 31, 2018	August 31, 2023
February 20, 2020	$100.0	1.2940%	February 28, 2020	February 28, 2025

(1) On December 1, 2016, the Company sold the interest rate hedge agreement.  The fair value of the interest rate hedge, as of the date of the sale, was recorded in other comprehensive income, net of tax.  The gain from the sale will be recognized into earnings when earnings are impacted by the cash flows of the previously hedged variable interest rate.

For the years ended December 31, 2021 and 2020, the effect of the Swaps on the Company’s financial statements are as follows:

Cash Flow Hedging Derivatives	Total Gain or (Loss) Recorded to AOCI					Amount of (Gain) or Loss Reclassified from AOCI into Income
	2021		2020			2021		2020
Interest Rate Swaps	$	3,285	$	(9,867	)	$	3,008	$	2,031

As of December 31, 2021, the net amount of realized losses from the hedge agreements expected to be reclassified from AOCI into earnings within the next 12 months is $2.3 million.