Number of derivative financial instruments

  
EXTRA SPACE STORAGE INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)Amounts in thousands, except store and share data, unless otherwise statedThe Credit Agreement is guaranteed by the Company and is not secured by any assets of the Company. The Company's unsecured debt is subject to certain financial covenants. As of June 30, 2022, the Company was in compliance with all of its financial covenants.  
Subsequent to quarter end, on July 29, 2022, the Company completed an accordion transaction in its credit facility, which added a $175.0 million unsecured debt tranche maturing January 2028 and a $425.0 million unsecured debt tranche maturing July 2029. The current interest rates for the tranches are Adjusted Term SOFR/Adjusted Daily Simple SOFR + 0.95% and SOFR + 1.25%, respectively. All of the Company’s lines of credit are guaranteed by the Company. The following table presents information on the Company’s lines of credit, the proceeds of which are used to repay debt and for general corporate purposes, for the periods indicated:

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|  | As of June 30, 2022 |  |  |  |  |  |  |
| Revolving Lines of Credit | Amount Drawn |  | Capacity |  | Interest Rate |  |  |  | Maturity |  | Basis Rate (1) |
| Credit Line 1 (2) | $ | 71,000  |  |  | $ | 140,000  |  |  | 2.9% |  |  |  | 7/1/2023 |  | SOFR plus 1.35% |
| Credit Line 2 (3)(4) | 528,000  |  |  | 1,250,000  |  |  | 2.6% |  |  |  | 6/20/2025 |  | LIBOR plus 0.85% |
|  | $ | 599,000  |  |  | $ | 1,390,000  |  |  |  |  |  |  |  |  |  |
| (1) 30-day USD LIBOR and Daily Simple SOFR |
| (2) Secured by mortgages on certain real estate assets. No remaining extensions available. |
| (3) Unsecured. Two six-month extensions available. |
| (4) Basis Rate as of June 30, 2022. Rate is subject to change based on the Company's investment grade rating. |

  
11.    DERIVATIVES  
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its debt funding and by using derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposure that arises from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings.  
Cash Flow Hedges of Interest Rate RiskThe Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.  
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (“OCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. A portion of these changes is excluded from accumulated other comprehensive income as it is allocated to noncontrolling interests. During the three and six months ended June 30, 2022 and 2021, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. In the coming 12 months, the Company estimates that $14,738 will be reclassified as an increase to interest income.  
The Company held 18 derivative financial instruments which had a total combined notional amount of $1,874,699 as of June 30, 2022.24
