| Derivative Instruments and Hedging Activities |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The following table presents information about the fair value amounts of the Company’s derivative instruments as follows at September 30, 2020 and December 31, 2019:
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Derivatives as of |
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September 30, 2020 |
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December 31, 2019 |
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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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$ |
— |
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$ |
15 |
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| Interest rate swap contracts |
Other liabilities |
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$ |
10,816 |
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$ |
6,210 |
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| Derivatives Not Designated as Hedging Instruments: |
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| Interest rate swap contracts |
Other liabilities |
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$ |
312 |
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$ |
26 |
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| Commodity swap contracts |
Other assets |
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$ |
— |
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$ |
198 |
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| Commodity swap contracts |
Other liabilities |
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$ |
44 |
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$ |
— |
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| Make-whole provisions |
Other liabilities |
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$ |
1,352 |
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$ |
918 |
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During the three months ended September 30, 2020, as a result of a qualitative assessment of the original volatility inputs used to calculate the hedge effectiveness related to two interest rate swaps that were executed in May 2020, the Company de-designated these interest rate swaps as effective hedging instruments and reclassified $303 out of accumulated other comprehensive income (“AOCI”) into other expenses, net.
As of September 30, 2020, all but four of the Company’s freestanding derivatives were designated as hedging instruments. As of December 31, 2019 all but three of the Company’s freestanding derivatives were designated as hedging instruments.
The following tables present information about the effects of the Company’s derivative instruments on the condensed consolidated statements of income and condensed consolidated statements of comprehensive income:
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Amount of (Gain) Loss Recognized in Net Income |
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Location of (Gain) Loss Recognized in Net Income |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2020 |
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2019 |
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2020 |
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2019 |
| Derivatives Designated as Hedging Instruments: |
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| Interest rate swap contracts |
Other expenses, net |
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$ |
503 |
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$ |
44 |
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$ |
908 |
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$ |
(6) |
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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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$ |
287 |
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$ |
(3) |
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$ |
287 |
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$ |
66 |
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| Commodity swap contracts |
Other expenses, net |
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194 |
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(31) |
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241 |
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(203) |
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| Make-whole provisions |
Other expenses, net |
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(27) |
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(150) |
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443 |
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(935) |
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Nine Months Ended September 30, 2020 |
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| Derivatives Designated as Hedging Instruments: |
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| Accumulated loss in AOCI at the beginning of the period |
$ |
(4,742) |
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| Unrealized loss recognized in AOCI |
(4,623) |
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| Loss reclassified from AOCI to other expenses, net |
1,211 |
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| Net loss on derivatives |
(3,412) |
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| Accumulated loss in AOCI at the end of the period |
$ |
(8,154) |
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The following tables present a listing of the Company’s active derivative instruments as of September 30, 2020:
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| Active Interest Rate Swap |
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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 |
3-Year, 2.46% Fixed |
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March 2018 |
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December 2020 |
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17,100 |
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Not 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 |
15-Year, 5.30% Fixed |
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February 2006 |
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February 2021 |
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3,256 |
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Designated |
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 |
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| Active Commodity Swap |
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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 |
1-Year, $2.70 MMBtu Fixed |
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May 2020 |
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April 2021 |
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435,810 |
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MMBtus |
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Not Designated |
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| Other Derivatives |
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Classification |
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Effective Date |
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Expiration Date |
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Fair Value ($) |
| 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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$ |
534 |
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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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432 |
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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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386 |
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