Interest rate swaps

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest rate swaps

Interest rate swaps

The Company uses interest rate swap agreements to fix the variable interest rates on portions of its debt. The purpose of using these derivatives is to reduce the Company’s exposure to the interest rate risk associated with variable-rate borrowings. Under these agreements, the Company pays a fixed interest rate in exchange for a LIBOR- or SOFR-based variable interest rate on a given notional amount. All of the Company’s interest rate swaps are designated and accounted for as cash flow hedges. Changes in the fair value of these derivatives are reported as a component of other comprehensive income and are reclassified into earnings in the period or periods in which the hedged transaction affects earnings. For information regarding the valuation of our interest rate swaps, see Note 13, “Fair value measurements.”

Notional amount (in millions)	Fixed interest rate			Asset (liability) (in millions) at
		Effective date	Maturity date	June 30, 2022		December 31, 2021
$50.0	2.75%	11/21/2022	11/21/2027	$	(0.1)	$	—
$50.0	2.78%	11/21/2022	11/21/2029	(0.1)		—
$24.0	4.88% - 5.05%	9/1/2021 - 9/1/2022	9/1/2034 - 9/1/2035	(0.6)		(5.3)
$13.0	2.79%	11/1/2020	10/1/2031	1.0		0.3

The asset related to the interest rate swaps as of June 30, 2022, is presented within other assets in the condensed consolidated balance sheet. The liability related to the interest rate swaps as of December 31, 2021, is presented within other liabilities. The changes in fair value of the cash flow hedges are recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest expense as interest is incurred on the related variable-rate debt.

The following table provides the pre-tax gain (loss) of the derivative instruments in the Company's condensed consolidated statement of comprehensive income (loss) during the three and six months ended June 30, 2022 and 2021:

	Three months ended June 30				Six months ended June 30
(in millions)	2022		2021		2022		2021
Gain (loss) on interest rate swaps designated as cash flow hedges recognized in other comprehensive income	$	1.1	$	(0.9)	$	5.1	$	1.2

As of June 30, 2022, the amount the Company expects to reclassify out of net gains (losses) on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months is not expected to be material.