Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments

v3.22.1
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

8. 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 6), 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 Accumulated Other Comprehensive Loss (“AOCL”) and is being amortized as additional interest expense over the ten-year term of the 2026 Senior Notes or until such time as interest payments on the 2026 Senior Notes are no longer probable. Such amortization is included in amortization of debt issuance costs and bond discount in the consolidated statements of cash flows.

The changes in AOCL for the three months ended March 31, 2022 and 2021 are summarized as follows:

 

(dollars in thousands)

 

Three Months
Ended
March 31, 2022

 

 

Three Months
Ended
March 31, 2021

 

Accumulated other comprehensive loss beginning
   of period

 

$

(4,124

)

 

$

(5,041

)

Realized loss reclassified from accumulated other
   comprehensive loss to interest expense

 

 

229

 

 

 

229

 

Accumulated other comprehensive loss end of period

 

$

(3,895

)

 

$

(4,812

)