Derivative Instruments

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest Rate Swaps on EZOP Debt. During the years ended December 31, 2021 and 2020, EZOP entered into interest rate swaps and caps for an aggregate notional amount of $360.2 million and $155.8 million, respectively, to economically hedge its exposure to the variable interest rates on a portion of the outstanding EZOP debt. No collateral was posted for the interest rate swaps and caps as they are secured under the EZOP revolving credit facility. In April 2021, the notional amount of the interest rate swaps and caps began decreasing to match EZOP's estimated monthly principal payments on the debt. During the years ended December 31, 2021 and 2020, EZOP unwound interest rate swaps with an aggregate notional amount of $131.7 million and $126.1 million, respectively, and recorded a realized loss of $68,000 and $6.4 million, respectively.

Interest Rate Swaps on TEPH Debt. During the years ended December 31, 2021 and 2020, TEPH entered into interest rate swaps for an aggregate notional amount of $236.3 million and $260.8 million, respectively, to economically hedge its exposure to the variable interest rates on a portion of the outstanding TEPH debt. No collateral was posted for the interest rate swaps as they are secured under the TEPH revolving credit facility. In October 2020, the notional amount of the interest rate swaps began decreasing to match TEPH's estimated quarterly principal payments on the debt. During the year ended December 31, 2021, TEPH unwound interest rate swaps with an aggregate notional amount of $121.3 million and recorded a realized loss of $2.2 million.

Interest Rate Cap on TEPINV Debt. During the year ended December 31, 2020, TEPINV entered into an interest rate cap for an aggregate notional amount of $95.2 million to economically hedge its exposure to the variable interest rates on a portion of the outstanding TEPINV debt. No collateral was posted for the interest rate cap as it is secured under the TEPINV revolving credit facility. In January 2020, the notional amount of the interest rate cap began decreasing to match TEPINV's estimated monthly principal payments on the debt. During the year ended December 31, 2021, the aggregate principal amount outstanding under the TEPINV revolving credit facility was fully repaid, TEPINV unwound the only outstanding interest rate cap with an aggregate notional amount of $36.6 million and recorded a realized gain of an immaterial amount.

The following table presents a summary of the outstanding derivative instruments:



	As of December 31,
	2021					2020
	Effective Date	Termination Date	Fixed Interest Rate	Aggregate Notional Amount		Effective Date	Termination Date	Fixed Interest Rate	Aggregate Notional Amount
	(in thousands, except interest rates)
EZOP	March 2021 - March 2022	July 2033 - July 2034	1.000%	$	261,836	June 2020 - November 2020	September 2029 - February 2031	0.483% - 2.620%	$	130,373
TEPH	February 2019 - January 2023	January 2023 - January 2036	0.121% - 2.534%	270,170		September 2018 - January 2023	January 2023 - January 2038	0.528% - 2.114%	202,272
TEPINV			—%	—		December 2019	December 2022	2.500%	51,025
Total				$	532,006				$	383,670

The following table presents the fair value of the interest rate swaps as recorded in the consolidated balance sheets:



	As of December 31,
	2021		2020
	(in thousands)
Other assets	$	14,351	$	—

Other long-term liabilities	(5,330)		(13,407)
Total, net	$	9,021	$	(13,407)

We did not designate the interest rate swaps as hedging instruments for accounting purposes. As a result, we recognize changes in fair value immediately in interest expense, net. The following table presents the impact of the interest rate swaps as recorded in the consolidated statements of operations:


	Year Ended December 31,
		2021		2020		2019
		(in thousands)
Realized loss		$	2,306	$	51,326	$	13,195
Unrealized (gain) loss		(4,874)		(13,768)		19,237
Total		$	(2,568)	$	37,558	$	32,432