We are a party to certain offsetting and identical interest rate cap agreements entered into to fulfill certain covenants of the equipment finance contract sale agreements. The interest rate cap agreements also provide a credit enhancement feature for the financing contracts sold by PDC Funding and PDC Funding II to the commercial paper conduit.

The interest rate cap agreements are entered into periodically to maintain consistency with the dollar maximum of the sale agreements and the maturity of the underlying financing contracts. As of January 27, 2024, PDC Funding had purchased an interest rate cap from a bank with a notional amount of $575,000 and a maturity date of July 2031. We sold an identical interest rate cap to the same bank.

These interest rate cap agreements do not qualify for hedge accounting treatment and, accordingly, we record the fair value of the agreements as an asset or liability and the change in fair value as income or expense during the period in which the change occurs.

In January 2014, we entered into a forward interest rate swap agreement with a notional amount of $250,000 and accounted for it as a cash flow hedge, in order to hedge interest rate fluctuations in anticipation of refinancing the 5.17% senior notes due March 25, 2015. These notes were repaid on March 25, 2015 and replaced with new $250,000 3.48% senior notes due March 24, 2025. A cash payment of $29,003 was made in March 2015 to settle the interest rate swap. This amount is recorded in other comprehensive income (loss), net of tax, and is recognized as interest expense over the life of the related debt.

We utilize forward interest rate swap agreements to hedge against interest rate fluctuations that impact the amount of net sales we record related to our customer financing contracts. These interest rate swap agreements do not qualify for hedge accounting treatment and, accordingly, we record the fair value of the agreements as an asset or liability and the change in fair value as income or expense during the period in which the change occurs.

As of April 29, 2023, the remaining notional amount for interest rate swap agreements was $551,504, with the latest maturity date in fiscal 2030. During the nine months ended January 27, 2024, we entered into forward interest rate swap agreements with a notional amount of $174,215. As of January 27, 2024, the remaining notional amount for interest rate swap agreements was $557,610, with the latest maturity date in fiscal 2031.

Net cash receipts of $10,893 and $3,687 were received during the nine months ended January 27, 2024 and January 28, 2023, respectively, to settle a portion of our assets and liabilities related to interest rate swap agreements. These payments and receipts are reflected as cash flows in the condensed consolidated statements of cash flows within net cash used in operating activities.


Derivative type	Classification	January 27, 2024		April 29, 2023
Assets:
Interest rate contracts	Prepaid expenses and other current assets	$	4,933	$	5,875
Interest rate contracts	Other non-current assets, net	16,329		23,210
Total asset derivatives		$	21,262	$	29,085
Liabilities:
Interest rate contracts	Other accrued liabilities	$	363	$	267
Interest rate contracts	Other non-current liabilities	10,224		12,993
Total liability derivatives		$	10,587	$	13,260

The following tables present the pre-tax effect of derivative instruments on the condensed consolidated statements of operations and other comprehensive income:


		Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)
		Three Months Ended				Nine Months Ended
Derivatives in cash flow hedging relationships	Statements of operations location	January 27, 2024		January 28, 2023		January 27, 2024		January 28, 2023
Interest rate contracts	Interest expense	$	(341)	$	(341)	$	(1,023)	$	(1,023)


		Amount of Gain (Loss) Recognized in Income on Derivatives
		Three Months Ended				Nine Months Ended
Derivatives not designated as hedging instruments	Statements of operations location	January 27, 2024		January 28, 2023		January 27, 2024		January 28, 2023
Interest rate contracts	Other income, net	$	(3,474)	$	(1,849)	$	6,087	$	9,275

There were no gains or losses recognized in other comprehensive income (loss) on cash flow hedging derivatives during the three and nine months ended January 27, 2024 or January 28, 2023.