We are exposed to market risk from changes in foreign exchange rates, interest rates and commodity prices that could impact our results of operations, cash flows and financial condition. We use interest rate derivatives to manage our exposures to interest rates. At inception, interest rate swap derivatives that we designate as hedging instruments are formally documented as a hedge of a forecasted transaction or cash flow hedge. We also formally assess, both at inception and at least quarterly thereafter, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer probable of occurring, we discontinue hedge accounting and any future mark-to-market adjustments are recognized in earnings. We use derivative financial instruments as risk management tools and not for speculative trading purposes.

We only enter into derivative transactions with established financial institution counterparties having an investment-grade credit rating. We monitor counterparty credit ratings on a regular basis. All of our derivative transactions with counterparties are governed by master International Swap and Derivatives Association agreements (“ISDAs”) with netting arrangements. These agreements can limit our exposure in situations where we have gain and loss positions outstanding with a single counterparty. We do not post nor do we receive cash collateral with any counterparty for our derivative transactions. These ISDAs do not have any credit contingent features; however, a default under our bank credit facility would trigger a default under these agreements. Exposure to individual counterparties is controlled and we consider the risk of counterparty default to be negligible.

We utilize interest rate swaps to minimize the fluctuations in earnings caused by interest rate volatility. These swaps are designated as cash flow hedges against changes in interest rates for a portion of our variable rate debt.

The following table summarizes our interest rate swaps as of March 31, 2024:


Coverage Period	Notional Amount		Risk Coverage	Trade Date
November 2023 to June 2024	$	50.0	USD-SOFR	September 18, 2023
March 2021 to March 2025	$	100.0	USD-SOFR	November 28, 2018
November 2023 to December 2025	$	50.0	USD-SOFR	October 23, 2023
March 2024 to June 2026	$	50.0	USD-SOFR	March 25, 2024
November 2023 to December 2026	$	50.0	USD-SOFR	October 10, 2023
March 2024 to June 2027	$	50.0	USD-SOFR	March 27, 2024
November 2023 to November 2027	$	50.0	USD-SOFR	September 29, 2023

Under the terms the interest rate swap with a November 28, 2018 trade date above, we pay a fixed rate monthly and receive a floating rate based on the Secured Overnight Financing Rate (“SOFR”), inclusive of a 0% floor. Under the terms of all remaining interest rate swaps above, we pay a fixed rate monthly and receive a floating rate based on SOFR.

The following tables detail amounts related to our derivatives as of March 31, 2024 and December 31, 2023. We did not have any derivative assets or liabilities not designated as hedging instruments as of March 31, 2024 or December 31, 2023. The derivative asset amounts below are shown gross and have not been netted.


	Derivative Assets					Derivative Liabilities
		Fair Value					Fair Value
	Balance Sheet Location	March 31, 2024		December 31, 2023		Balance Sheet Location	March 31, 2024		December 31, 2023
Interest rate swap contracts	Other current assets	$	1.9	$	1.1	Accounts payable and accrued expenses	$	-	$	0.1
Interest rate swap contracts	Other non-current assets		-		1.8	Other long-term liabilities		0.9		3.2


	Amount of Gain (Loss) Recognized in AOCI					Location of Gain Reclassified from AOCI into Net Earnings	Gain Reclassified from AOCI into Net Earnings
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2024		2023				2024		2023
Derivatives in cash flow hedging relationships
Interest rate swap contracts	$	2.9	$	(0.5	)	Interest expense	$	2.1	$	2.4

As of March 31, 2024, the amount of existing gains in Accumulated Other Comprehensive Income (“AOCI”) expected to be recognized in net earnings over the next twelve months was $3.4 million.