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INTEREST RATE SWAPS | 3 Months Ended
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Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
INTEREST RATE SWAPS | 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 SOFR 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 net interest expense. A summary of the significant terms of the Company’s interest rate swap agreements is as follows (dollars in thousands):
| Entry Date |  | Effective Date |  | Maturity Date(1) |  | Notional Amount |  | Settlement Type |  | Settlement Frequency |  | Fixed Base Rate
Swap A(2) | 3/7/2019 |  | 3/11/2019 |  | 3/11/2029 |  | $ | 850,000 |  |  | Receive one-month SOFR, pay fixed |  | Monthly |  | 2.595%
Swap B(3) | 3/6/2019 |  | 6/15/2020 |  | 2/28/2029 |  | 350,000 |  |  | Receive one-month SOFR, pay fixed |  | Monthly |  | 2.691%
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. (2)Swap A was amended effective February 28, 2023 to transition the reference rate from LIBOR to SOFR, resulting in the fixed base rate changing from 2.653% to 2.595%. (3)Swap B was amended effective March 1, 2023 to transition the reference rate from LIBOR to SOFR, resulting in the fixed base rate changing from 2.739% to 2.691%. The combined fair values of the Company’s interest rate swaps are reflected within the condensed consolidated balance sheets as follows (in thousands):
| March 31, 2025 |  | December 31, 2024
Assets: |  |  |
Current portion: |  |  |
Prepaid and other current assets | $ | 15,469 |  |  | $ | 17,659 |
Noncurrent portion: |  |  |
Other noncurrent assets | 28,764 |  |  | 46,200 |
Total interest rate swap asset | $ | 44,233 |  |  | $ | 63,859 |
Stockholders’ Equity: |  |  |
Accumulated other comprehensive income | $ | 33,305 |  |  | $ | 48,291 |
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 March 31, |  |
| 2025 |  | 2024 |  |  |  |
Interest (income) expense | $ | (5,130) |  |  | $ | (8,243) |  |  |  |  |
Unrealized gain (loss) on cash flow hedges, gross | $ | (19,626) |  |  | $ | 24,059 |  |  |  |  |
Less: Tax effect | 4,640 |  |  | (5,785) |  |  |  |  |
Unrealized gain (loss) on cash flow hedges, net of tax | $ | (14,986) |  |  | $ | 18,274 |  |  |  |  |
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://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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