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Note 9 - Interest Rate Swaps | 9 Months Ended
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Sep. 30, 2022
Notes to Financial Statements |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 9. INTEREST RATE SWAPS The Company is party to two interest rate swap agreements, designated as cash flow hedges, to manage the risk of fluctuations in interest rates on its variable rate LIBOR debt. Changes in the fair values of the interest rate swaps are reported through other comprehensive income until the underlying hedged debt’s interest expense impacts net income, at which point the corresponding change in fair value is reclassified from accumulated other comprehensive income to interest expense. A summary of the significant terms of the Company’s interest rate swap agreements is as follows (dollars in thousands):
|  | Entry |  | Effective |  | Maturity |  | Notional |  | Settlement |  | Settlement |  | Fixed
|  | Date |  | Date |  | Date(1) |  | Amount |  | Type |  | Frequency |  | Base Rate
Swap A |  | 3/7/2019 |  | 3/11/2019 |  | 3/11/2029 |  | $ | 850,000 |  | Receive one-month LIBOR, pay fixed |  | Monthly |  | 2.653%
Swap B |  | 3/6/2019 |  | 6/15/2020 |  | 2/28/2029 |  |  | 350,000 |  | Receive one-month LIBOR, pay fixed |  | Monthly |  | 2.739%
Total |  | $ | 1,200,000 |  |  |  |  |  |
(1) | Each swap may be terminated prior to the scheduled maturity at the election of the Company or the financial institution counterparty under the terms provided in each swap agreement.
The combined fair values of the Company’s interest rate swaps are reflected within the condensed consolidated balance sheets as follows (in thousands):
|  | September 30, 2022 |  |  | December 31, 2021 |
Assets: |  |  |  |  |  |  |  |
Current portion: |  |  |  |  |  |  |  |
Prepaid and other current assets |  | $ | 18,994 |  |  | $ | - |
Noncurrent portion: |  |  |  |  |  |  |  |
Other noncurrent assets |  | $ | 54,305 |  |  | $ | - |
Liabilities: |  |  |  |  |  |  |  |
Current portion: |  |  |  |  |  |  |  |
Accounts payable and accrued liabilities |  | $ | - |  |  | $ | 26,662 |
Noncurrent portion: |  |  |  |  |  |  |  |
Interest rate swap liability |  | $ | - |  |  | $ | 81,627 |
Net Asset (Liability) |  | $ | 73,299 |  |  | $ | (108,289 | )
Stockholders’ Equity: |  |  |  |  |  |  |  |
Accumulated other comprehensive income (loss) |  | $ | 55,388 |  |  | $ | (81,873 | )
The combined effect of the Company’s interest rate swaps on the condensed consolidated statements of operations and comprehensive income was as follows (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Interest expense |  | $ | 1,463 |  |  | $ | 7,920 |  |  | $ | 14,873 |  |  | $ | 23,371 |
Unrealized gain (loss) on cash flow hedges, gross |  | $ | 62,517 |  |  | $ | 12,867 |  |  | $ | 181,588 |  |  | $ | 65,436 |
Less: Tax effect |  |  | (15,269 | ) |  |  | (3,364 | ) |  |  | (44,327 | ) |  |  | (16,494 | )
Unrealized gain (loss) on cash flow hedges, net of tax |  | $ | 47,248 |  |  | $ | 9,503 |  |  | $ | 137,261 |  |  | $ | 48,942 |
The Company does not hold any derivative instruments for speculative trading purposes.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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