Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments

v3.22.0.1
Derivative Financial Instruments
12 Months Ended
Dec. 31, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

7. DERIVATIVE FINANCIAL INSTRUMENTS

In 2015 and 2016, the Company entered into forward starting interest rate swap agreements to hedge the risk of changes in the interest-related cash flows associated with the potential issuance of fixed rate long-term debt. In conjunction with the issuance of the 2026 Senior Notes (see Note 5), the Company terminated these hedges and settled the forward starting swap agreements for approximately $9.2 million. The $9.2 million has been deferred in AOCL and is being amortized as additional interest expense over the 10-year term of the 2026 Senior Notes or until such time as interest payments on the 2026 Senior Notes are no longer probable. The Company expects to record $0.9 million of interest expense in 2022 as a result of the amortization of the amount deferred in AOCL related to these forward starting interest rate swap agreements.

The changes in AOCL for the years ended December 31, 2021, 2020, and 2019 are summarized as follows:

 

(dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Accumulated other comprehensive loss beginning of period

 

$

(5,041

)

 

$

(5,958

)

 

$

(6,875

)

Realized loss reclassified from accumulated other
   comprehensive loss to interest expense

 

 

917

 

 

 

917

 

 

 

917

 

Accumulated other comprehensive loss end of period

 

$

(4,124

)

 

$

(5,041

)

 

$

(5,958

)