Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Our derivative instruments designated as cash flow hedges as of September 30, 2023 were (in thousands):

Notional Amount

Paid Fixed Rate

Receive Variable Rate

Settlement and Termination

Interest rate swaps

$150,000

2.8%

1-month term SOFR

Monthly through October 31, 2027

Interest rate swaps (a)

$100,000

4.5%

1-month term SOFR

Monthly through July 31, 2026

(a) In July 2023, we executed a fixed interest rate swap that hedges the variability in interest payments on $100 million of floating rate debt. We have designated, and will account for, this fixed interest rate swap as a cash flow hedge.

We are party to fixed interest rate swap instruments that are designated and accounted for as cash flow hedges to manage risks associated with interest rate fluctuations on a portion of our floating rate debt. For the three and nine months ended September 30, 2023, we reclassified $1.1 million and $2.6 million, respectively, from accumulated other comprehensive income to interest expense, net. We estimate that we will reclassify $4.5 million of unrealized gains from accumulated other comprehensive income into earnings in the twelve months following September 30, 2023.