| Derivative Instruments and Hedging Activities |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The following table presents information about the fair value amounts of our cash flow derivative instruments:
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Derivatives as of |
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September 30, 2021 |
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December 31, 2020 |
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Balance Sheet Location |
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Fair Value |
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Fair Value |
| Derivatives Designated as Hedging Instruments: |
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| Interest rate swap contracts |
Other liabilities |
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$ |
7,250 |
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$ |
9,994 |
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| Derivatives Not Designated as Hedging Instruments: |
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| Interest rate swap contracts |
Other assets |
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$ |
800 |
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$ |
2 |
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| Interest rate swap contracts |
Other liabilities |
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$ |
35 |
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$ |
79 |
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| Commodity swap contracts |
Other assets |
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$ |
— |
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$ |
363 |
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| Commodity swap contracts |
Other liabilities |
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$ |
3,544 |
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$ |
— |
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| Make-whole provisions |
Other liabilities |
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$ |
4,715 |
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$ |
412 |
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As of September 30, 2021 and December 31, 2020, all but four of our freestanding derivatives were designated as hedging instruments.
The following table presents information about the effects of our derivative instruments on our condensed consolidated statements of income and condensed consolidated statements of comprehensive income:
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Amount of Loss (Gain) Recognized in Net Income |
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Location of Loss (Gain) Recognized in Net Income |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2021 |
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2020 |
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2021 |
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2020 |
| Derivatives Designated as Hedging Instruments: |
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| Interest rate swap contracts |
Other expenses, net |
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$ |
528 |
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$ |
503 |
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$ |
1,573 |
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$ |
908 |
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| Derivatives Not Designated as Hedging Instruments: |
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| Interest rate swap contracts |
Other expenses, net |
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$ |
(63) |
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$ |
287 |
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$ |
(842) |
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$ |
287 |
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| Commodity swap contracts |
Other expenses, net |
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$ |
2,409 |
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$ |
194 |
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3,907 |
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241 |
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| Make-whole provisions |
Other expenses, net |
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$ |
(1,679) |
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$ |
(27) |
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(1,173) |
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443 |
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The following table presents the changes in Accumulated Other Comprehensive Income (“AOCI”), net of taxes, from our hedging instruments:
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Nine Months Ended September 30, 2021 |
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| Derivatives Designated as Hedging Instruments: |
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| Accumulated loss in AOCI at the beginning of the period |
$ |
(7,526) |
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| Unrealized gain recognized in AOCI |
508 |
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| Loss reclassified from AOCI to other expenses, net |
1,573 |
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| Net gain on derivatives |
2,081 |
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| Accumulated loss in AOCI at the end of the period |
$ |
(5,445) |
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The following tables present all of our active derivative instruments as of September 30, 2021:
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| Active Interest Rate Swaps |
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Effective Date |
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Expiration Date |
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Initial Notional
Amount ($) |
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Status |
11-Year, 5.77% Fixed |
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October 2018 |
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October 2029 |
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$ |
9,200 |
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Designated |
15-Year, 5.24% Fixed |
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June 2018 |
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June 2033 |
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$ |
10,000 |
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Designated |
10-Year, 4.74% Fixed |
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June 2017 |
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December 2027 |
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$ |
14,100 |
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Designated |
15-Year, 3.26% Fixed |
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February 2023 |
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December 2038 |
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$ |
14,084 |
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Designated |
7-Year, 2.19% Fixed |
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February 2016 |
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February 2023 |
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$ |
20,746 |
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Designated |
8-Year, 3.70% Fixed |
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March 2020 |
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June 2028 |
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$ |
14,643 |
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Designated |
8-Year, 3.70% Fixed |
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March 2020 |
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June 2028 |
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$ |
10,734 |
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Designated |
13-Year, 0.93% Fixed |
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May 2020 |
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March 2033 |
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$ |
9,505 |
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Not Designated |
13-Year, 0.93% Fixed |
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May 2020 |
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March 2033 |
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$ |
6,968 |
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Not Designated |
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15.5-Year, 5.40% Fixed |
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September 2008 |
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March 2024 |
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$ |
13,081 |
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Designated |
2.75-Year, 0.41% Fixed |
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December 2020 |
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September 2023 |
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$ |
26,250 |
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Not Designated |
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| Active Commodity Swaps |
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Effective Date |
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Expiration Date |
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Initial Notional Amount (Volume) |
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Commodity Measurement |
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Status |
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3.5-Year, $2.65 MMBtu Fixed |
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December 2020 |
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June 2024 |
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3,296,160 |
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MMBtus |
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Not Designated |
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| Other Derivatives |
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Classification |
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Effective Date |
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Expiration Date |
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Fair Value ($) |
| Make-whole provisions |
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Liability |
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June/August 2018 |
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December 2038 |
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$ |
151 |
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| Make-whole provisions |
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Liability |
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August 2016 |
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April 2031 |
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$ |
48 |
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| Make-whole provisions |
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Liability |
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April 2017 |
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February 2034 |
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$ |
62 |
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| Make-whole provisions |
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Liability |
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November 2020 |
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December 2027 |
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$ |
53 |
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| Make-whole provisions |
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Liability |
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October 2011 |
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May 2028 |
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$ |
14 |
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| Make-whole provisions |
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Liability |
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May 2021 |
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April 2045 |
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$ |
221 |
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| Make-whole provisions |
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Liability |
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July 2021 |
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March 2046 |
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$ |
4,166 |
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