Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments and Hedging Activities (Tables)

v3.22.4
Derivative Financial Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The table below presents the location and gross fair value amounts of the Company's derivative financial instruments and the associated notional amounts designated as cash flow hedges (in thousands):
 
December 31, 2022
  Balance Sheet Location Notional Fair Value Derivative Assets
Derivatives designated as hedges:
Cash flow hedges
Interest rate swaps Derivative financial instruments $ 20,000 $ 1,965

 
December 31, 2021
  Balance Sheet Location Notional Fair Value Derivative Assets
Derivatives designated as hedges:
Cash flow hedges
Interest rate swaps Derivative financial instruments $ 20,000 $ 355

Schedule of Designated as Hedging Instruments in AOCI
The table below presents the effect of our derivative financial instruments designated as hedging instruments in AOCI (in thousands):
Years Ended
 
December 31, 2022
December 31, 2021 (a)
Gain on cash flow hedges - interest rate swaps  
Beginning balance $ 268 $ —
Unrealized gain recognized in AOCI 1,807 249
Amounts reclassified to interest expense (b)(c) (198) 106
Tax provision (388) (87)
Ending balance $ 1,489 $ 268
(a) No derivative instruments existed for the year ended December 31, 2020.
(b) Negative amounts represent interest income and positive amounts represent interest expense. Interest expense as presented in the condensed consolidated statement of operations for the years ended December 31, 2022, 2021 and 2020 was $1.4 million, $1.4 million and $1.3 million, respectively.
(c) As of December 31, 2022, $0.8 million of income is expected to be reclassified into earnings within the next 12 months.