Derivative Financial Instruments

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table summarizes the notional values related to the Company’s derivative instruments outstanding at March 31, 2022 (in thousands):


	March 31, 2022
Interest rate swap(1)	$	69,188

(1)

Number of open positions and gross notional values do not measure the Company’s risk of loss, quantify risk or represent assets or liabilities of the Company, but rather indicate the relative size of the derivative instruments and are used in the calculation of the amounts to be exchanged between counterparties upon settlements.

The following table presents the fair value of each classification of the Company’s derivative instruments designated as hedging instruments as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
Current liabilities
Interest rate swaps – cash flow hedges	$	708	$	1,401
Non-current liabilities
Interest rate swaps – cash flow hedges		509		2,999
Derivative liabilities	$	1,217	$	4,400

The current portion of derivative liability is included in accrued liabilities and other liabilities financial statement line item.

Derivatives Accounted for as Cash Flow Hedges

The Company’s cash flow hedges for 2022 and 2021, include interest rate swaps that are hedges of variability in forecasted interest payments due to changes in the interest rate on LIBOR-based borrowings, a summary which includes the following designations:

•

In 2018, the Company entered into two long-term interest rate swap agreements with a major financial institution. The swaps, which became effective in October 2018 and expire in April 2030, are used to hedge approximately 70% of the variability in interest payments/interest risk on the bank loans dated June 23, 2017.

The following table presents the gains and losses from the Company’s derivative instruments designated in a cash flow hedging relationship recognized in the consolidated statements of comprehensive income for the three months ended in March 31, 2022 (in thousands):


Derivatives Designated in Cash Flow Hedging Relationship	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion)				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	For the three months ended March 31,					For the three months ended March 31,
	2022		2021			2022			2021
Interest rate swaps	$	2,958	$	1,865	Interest expense	$	(86	)	$	(174	)

The amount of gain (loss) recognized in other comprehensive income as of March 31, 2022 and expected to be reclassified within the next 12 months was $(0.7) million.