Company: ONEW
Filing Date: 2025-01-31
Form Type: 10-Q
Source: 0001772921-25-000013
Chunk: 28

Company: OneWater Marine Inc.
Filing Date: 2025-01-31
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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ception DateHedged RateNotional Value at Inception (in thousands)Maturity DateSeptember 2024SOFR$200,000 September 2027September 2024Term SOFR$200,000 September 2027The fair value of the cash flow swaps is calculated using an income approach. The income approach involves using the quoted price for economically equivalent inputs or valuation methodologies, assumptions and inputs, which in the case of projected future cash flows, discount such cash flows to a single net present value amount. The following table provides information regarding the fair value of the interest rate swap agreements and the impact on the unaudited condensed consolidated balance sheets at ($ in thousands):Balance Sheet LocationDecember 31, 2024September 30, 2024Prepaid expenses and other current assets$2,500 $1,560 Other long-term assets2,723 — Other long-term liabilities— (3,626)Net asset (liability)$5,223 $(2,066)The interest rate swaps qualify for cash flow hedge accounting treatment. The interest rate swaps are marked to market each reporting date and any unrealized gains or losses, and the related income tax effects, are included in accumulated other comprehensive income (loss) and reclassified into earnings in the same period during which the hedged transactions affect earnings. Information about the effect of the interest swap agreements in the accompanying unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of comprehensive income (loss), is as follows ($ in thousands):For the three months ended December 31,Results Recognized in Accumulated Other Comprehensive Income (Loss) (effective Portion)Location of Results Reclassified from Accumulated Other Comprehensive Income (Loss) to EarningsResults Reclassified from Accumulated Other Comprehensive Income (Loss) to Earnings2024$8,573 Interest expense – other and Interest expense – floor plan$1,284 2023$— Interest expense – other and Interest expense – floor plan$— The following table sets forth the location and amount of gain or (loss) recognized in earnings on cash flow hedging relationships for the three months ended December 31, 2024 and 2023 ($ in thousands):December 31, 2024December 31, 2023Interest expense – otherInterest expense – floor planInterest expense – otherInterest expense – floor planAmount of gain or (loss) reclassified from accumulated other comprehensive income (loss) to earnings$568