Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities

v3.22.2
Derivative Instruments and Hedging Activities
6 Months Ended
Jun. 30, 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 cash flow derivative instruments:  
  Derivatives as of
  June 30, 2022   December 31, 2021
  Balance Sheet Location Fair Value Fair Value
Derivatives Designated as Hedging Instruments:
Interest rate swap contracts Other assets $ 257  $ — 
Interest rate swap contracts Other liabilities $ 849  $ 6,316 
Derivatives Not Designated as Hedging Instruments:
Interest rate swap contracts Other assets $ 2,940  $ 919 
Commodity swap contracts Other liabilities $ 4,476  $ 1,962 
Make-whole provisions Other liabilities $ 5,940  $ 4,800 
As of June 30, 2022 and December 31, 2021, 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:
Amount of Loss (Gain) Recognized in Net Income
Location of Loss (Gain) Recognized in Net Income Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Derivatives Designated as Hedging Instruments:
Interest rate swap contracts Other expenses, net $ 360  $ 522  $ 841  $ 1,045 
Derivatives Not Designated as Hedging Instruments:
Interest rate swap contracts Other expenses, net $ (759) $ 543  $ (2,021) $ (779)
Commodity swap contracts Other expenses, net $ (92) $ 1,250  2,514  1,498 
Make-whole provisions Other expenses, net $ (216) $ (205) 62  506 
The following table presents the changes in Accumulated Other Comprehensive Income (“AOCI”), net of taxes, from our hedging instruments:
Six Months Ended June 30, 2022
Derivatives Designated as Hedging Instruments:
Accumulated loss in AOCI at the beginning of the period $ (4,733)
Unrealized gain recognized in AOCI 3,435 
Loss reclassified from AOCI to other expenses, net 841 
Net gain on derivatives 4,276 
Accumulated loss in AOCI at the end of the period $ (457)
The following tables present all of our active derivative instruments as of June 30, 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
2.75-Year, 0.41% Fixed
December 2020 September 2023 $ 26,250  Not Designated
Active Commodity Swaps Effective Date Expiration Date Initial Notional Amount (Volume) Commodity Measurement Status
3.5-Year, $2.65 MMBtu Fixed
December 2020 June 2024 3,296,160  MMBtus Not Designated
Other Derivatives Classification Effective Date Expiration Date Fair Value ($)
Make-whole provisions Liability June/August 2018 December 2038 $ 964 
Make-whole provisions Liability August 2016 April 2031 $ 92 
Make-whole provisions Liability April 2017 February 2034 $ 66 
Make-whole provisions Liability November 2020 December 2027 $ 83 
Make-whole provisions Liability October 2011 May 2028 $ 33 
Make-whole provisions Liability May 2021 April 2045 $ 290 
Make-whole provisions Liability July 2021 March 2046 $ 3,324 
Make-whole provisions Liability June 2022 March 2042 $ 1,088