Annual report pursuant to Section 13 and 15(d)

Derivative Instruments and Hedging Activities

v3.22.4
Derivative Instruments and Hedging Activities
12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The following table presents information about the fair value amounts of our derivative instruments: 
Derivatives as of December 31,
2022 2021
Balance Sheet Location Fair Value Fair Value
Derivatives Designated as Hedging Instruments
Interest rate swap contracts Other assets $ 1,748  $ — 
Interest rate swap contracts Other liabilities $ $ 6,316 
Derivatives Not Designated as Hedging Instruments
Interest rate swap contracts Other assets $ 3,454  $ 919 
Commodity swap contracts Other liabilities $ —  $ 1,962 
Make-whole provisions Other liabilities $ 5,348  $ 4,800 
As of December 31, 2022, all but two of our freestanding derivatives were designated as hedging instruments and as of December 31, 2021, all but four of our derivatives were designated as hedging instruments.
The following tables present information about the effects of our derivative instruments on the consolidated statements of income and consolidated statements of comprehensive income:
Location of (Gain) Loss Recognized in Net Income Amount of (Gain) Loss Recognized in Net Income for the Year Ended December 31,
2022 2021 2020
Derivatives Designated as Hedging Instruments
Interest rate swap contracts Other expenses, net $ 1,037  $ 2,086  $ 1,455 
Derivatives Not Designated as Hedging Instruments
Interest rate swap contracts Other expenses, net $ (2,738) $ (996) $ 51 
Commodity swap contracts Other expenses, net $ 2,338  $ 2,325  $ (165)
Make-whole provisions Other expenses, net $ (506) $ (1,089) $ (591)
The following table presents the changes in AOCI, net of taxes, from our hedging instruments:
Year Ended December 31, 2022
Derivatives Designated as Hedging Instruments:
Accumulated loss in AOCI at the beginning of the year $ (4,733)
Unrealized gain recognized in AOCI 4,980 
Loss reclassified from AOCI to other expenses, net 1,037 
Net gain on derivatives 6,017 
AOCI at the end of the year $ 1,284 
The following tables present all of our active derivative instruments as of December 31, 2022:
Active Interest Rate Swaps Effective Date Expiration Date Initial Notional Amount ($) Status
11-Year, 5.77% Fixed
October 2018 October 2029 $ 9,200  Designated
15-Year, 5.24% Fixed
June 2018 June 2033 $ 10,000  Designated
10-Year, 4.74% Fixed
June 2017 December 2027 $ 14,100  Designated
15-Year, 3.26% Fixed
February 2023 December 2038 $ 14,084  Designated
7-Year, 2.19% Fixed
February 2016 February 2023 $ 20,746  Designated
8-Year, 3.70% Fixed
March 2020 June 2028 $ 14,643  Designated
8-Year, 3.70% Fixed
March 2020 June 2028 $ 10,734  Designated
13-Year, 0.93% Fixed
May 2020 March 2033 $ 9,505  Not Designated
13-Year, 0.93% Fixed
May 2020 March 2033 $ 6,968  Not Designated
15.5-Year, 5.40% Fixed
September 2008 March 2024 $ 13,081  Designated
Other Derivatives Classification Effective Date Expiration Date Fair Value ($)
Make-whole provisions Liability June/August 2018 December 2038 $ 697 
Make-whole provisions Liability August 2016 April 2031 $ 55 
Make-whole provisions Liability April 2017 February 2034 $ 46 
Make-whole provisions Liability November 2020 December 2027 $ 48 
Make-whole provisions Liability October 2011 May 2028 $ 14 
Make-whole provisions Liability May 2021 April 2045 $ 129 
Make-whole provisions Liability July 2021 March 2046 $ 3,204 
Make-whole provisions Liability June 2022 March 2042 $ 1,155