Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table includes the key provisions of the interest rate swaps outstanding as of June 30, 2024 and December 31, 2023 (fair value in thousands):


Notional	Fixed Base Interest Rate Swap	Effective Date	Expiration Date	Asset Fair Value as of June 30, 2024		Liability Fair Value as of June 30, 2024
$200 million	3.05%	12/29/2023	7/30/2027	$	6,804	$	—
$175 million	3.47%	11/30/2022	7/30/2027	3,846		—
$270 million	3.05%	11/01/2022	12/31/2027	9,806		—
C$250 million	3.59%	9/23/2022	12/31/2027	1,640		—
			Total	$	22,096	$	—


Notional	Fixed Base Interest Rate Swap	Effective Date	Expiration Date	Asset Fair Value as of December 31, 2023		Liability Fair Value as of December 31, 2023
$200 million	3.05%	12/29/2023	7/30/2027	$	3,687	$	—
$175 million	3.47%	11/30/2022	7/30/2027	788		—
$270 million	3.05%	11/01/2022	12/31/2027	5,106		—
C$250 million	3.59%	9/23/2022	12/31/2027	—		330
			Total	$	9,581	$	330

Summary of Derivative Results

The following table presents the fair value of the derivative financial instruments as of June 30, 2024 and December 31, 2023 (in thousands):


	Derivative Assets				Derivative Liabilities
	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
	(In thousands)
Designated derivatives
Foreign exchange contracts	$	7,826	$	5,899	$	—	$	—
Interest rate contracts	22,096		9,581		—		330
Total fair value of derivatives	$	29,922	$	15,480	$	—	$	330

The following tables present the effect of the Company’s derivative financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023, including the impacts to Accumulated Other Comprehensive (Loss) Income (AOCI) (in thousands):


	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative				Location of Gain or (Loss) Reclassified from AOCI into Income	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income

	Three Months Ended June 30,					Three Months Ended June 30,
	2024		2023			2024		2023
Interest rate contracts	$	4,273	$	24,542	Interest expense	$	4,288	$	3,311
Interest rate contracts	—		—		Loss on debt extinguishment and termination of derivative instruments(1)	(324)		(627)
Foreign exchange contracts	(1,698)		1,478		Foreign currency exchange loss, net	(2,387)		842
Foreign exchange contracts	—		—		Interest expense	62		135
Total designated cash flow hedges	$	2,575	$	26,020		$	1,639	$	3,661

(1) In conjunction with the termination of interest rate swaps in 2020, the Company recorded amounts in other comprehensive income that will be reclassified as an adjustment to earnings over the term of the original hedges and respective borrowings. During the three months ended June 30, 2024, the Company recorded an increase to “Loss on debt extinguishment and termination of derivative instruments” related to this transaction.


	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative				Location of Gain or (Loss) Reclassified from AOCI into Income	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income

	Six Months Ended June 30,					Six Months Ended June 30,
	2024		2023			2024		2023
Interest rate contracts	$	21,479	$	14,295	Interest expense	$	8,663	$	5,743
Interest rate contracts	—		—		Loss on debt extinguishment and termination of derivative instruments(1)	(748)		(1,247)
Foreign exchange contracts	2,134		3,161		Foreign currency exchange loss, net	1,855		2,938
Foreign exchange contracts	—		—		Interest expense	207		227
Total designated cash flow hedges	$	23,613	$	17,456		$	9,977	$	7,661

(1) In conjunction with the termination of interest rate swaps in 2020, the Company recorded amounts in other comprehensive income that will be reclassified as an adjustment to earnings over the term of the original hedges and respective borrowings. During the six months ended June 30, 2024, the Company recorded an increase to “Loss on debt extinguishment and termination of derivative instruments” related to this transaction.