| 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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March 31, 2024 |
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December 31, 2023 |
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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 assets |
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$ |
1,752 |
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$ |
1,023 |
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| Derivatives Not Designated as Hedging Instruments: |
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| Interest rate swap contracts |
Other assets |
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$ |
3,420 |
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$ |
2,947 |
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| Interest rate swap contracts |
Other liabilities |
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$ |
— |
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$ |
629 |
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| Make-whole provisions |
Other liabilities |
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$ |
4,755 |
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$ |
6,012 |
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As of March 31, 2024 and December 31, 2023, all but 3 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 (Gain) Loss Recognized in Net (Loss) Income |
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Location of (Gain) Loss Recognized in Net (Loss) Income |
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Three Months Ended March 31, |
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2024 |
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2023 |
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| Derivatives Designated as Hedging Instruments: |
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| Interest rate swap contracts |
Other expenses, net |
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$ |
(276) |
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$ |
11 |
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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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$ |
(1,102) |
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$ |
458 |
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| Make-whole provisions |
Other expenses, net |
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$ |
(1,257) |
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$ |
(295) |
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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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Three Months Ended March 31, 2024 |
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| Derivatives Designated as Hedging Instruments: |
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| Accumulated gain in AOCI at the beginning of the period |
$ |
746 |
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| Unrealized gain recognized in AOCI |
815 |
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| Gain reclassified from AOCI to other expenses, net |
(276) |
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| Gain on derivatives |
539 |
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| Accumulated gain in AOCI at the end of the period |
$ |
1,285 |
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The following tables present all of our active derivative instruments as of March 31, 2024:
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| Active Interest Rate Swaps |
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Expiration Date |
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Initial Notional
Amount ($) |
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Status |
11-Year, 5.77% Fixed |
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October 2029 |
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$ |
9,200 |
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Designated |
15-Year, 5.24% Fixed |
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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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December 2027 |
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$ |
14,100 |
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Designated |
8-Year, 3.49% Fixed |
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June 2028 |
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$ |
14,643 |
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Designated |
8-Year, 3.49% Fixed |
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June 2028 |
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$ |
10,734 |
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Designated |
13-Year, 0.72% Fixed |
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March 2033 |
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$ |
9,505 |
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Not Designated |
13-Year, 0.72% Fixed |
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March 2033 |
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$ |
6,968 |
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Not Designated |
17.75-Year, 3.16% Fixed |
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December 2040 |
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$ |
14,084 |
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Designated |
18-Year, 3.81% Fixed |
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July 2041 |
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$ |
32,021 |
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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 ($) |
| Make-whole provisions |
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Liability |
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June/August 2018 |
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December 2038 |
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$ |
169 |
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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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$ |
35 |
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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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$ |
27 |
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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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$ |
26 |
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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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$ |
2 |
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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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$ |
11 |
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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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$ |
2,085 |
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| Make-whole provisions |
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Liability |
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June 2022 |
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March 2042 |
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$ |
797 |
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| Make-whole provisions |
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Liability |
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March 2023 |
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December 2047 |
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$ |
1,603 |
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