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INTEREST RATE SWAPS
 3 Months Ended
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 DateEffective Date
Maturity Date(1)
Notional AmountSettlement TypeSettlement FrequencyFixed Base Rate
Swap A(2)
3/7/20193/11/20193/11/2029$850,000 Receive one-month SOFR, pay fixedMonthly2.595%
Swap B(3)
3/6/20196/15/20202/28/2029350,000 Receive one-month SOFR, pay fixedMonthly2.691%
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, 2025December 31, 2024
Assets:
Current portion:
Prepaid and other current assets$15,469 $17,659 
Noncurrent portion:
Other noncurrent assets28,764 46,200 
Total interest rate swap asset$44,233 $63,859 
Stockholders’ Equity:
Accumulated other comprehensive income$33,305 $48,291 
The combined effect of the Company’s interest rate swaps on the condensed consolidated statements of operations and comprehensive income was as follows (in thousands):
Three Months Ended March 31,
20252024
Interest (income) expense$(5,130)$(8,243)
Unrealized gain (loss) on cash flow hedges, gross$(19,626)$24,059 
Less: Tax effect4,640 (5,785)
Unrealized gain (loss) on cash flow hedges, net of tax$(14,986)$18,274 
The Company does not hold any derivative instruments for speculative trading purposes.