DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY |
3 Months Ended |
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Mar. 31, 2026 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY | DERIVATIVE FINANCIAL INSTRUMENT AND HEDGING ACTIVITY In April 2020, the Company entered into an interest rate swap with Citizens Bank, N.A. to manage its exposure to changes in the London Interbank Offered Rate (“LIBOR”)-based interest rates underlying total borrowings under term facilities related to the 2021 Credit Agreement. The interest rate swap matures in December 2026. The Company amended its 2021 Credit Agreement to transition from LIBOR to the Secured Overnight Financing Rate (“SOFR”) due to the cessation of LIBOR in the third quarter of 2023, and accordingly, the interest rate swap transitioned from LIBOR to SOFR. The interest rate swap is used to manage changes in SOFR-based interest rates underlying a portion of the borrowing under the Term Loan A. Concurrent with the termination of the 2021 Credit Agreement and entry into the 2024 Credit Agreement with Truist Bank, the interest rate swap with a notional value of $168.6 million at origin on November 21, 2021 was novated and Truist Bank became the new counterparty. On August 30, 2024, in connection with the entry into the 2024 Credit Facility, the interest rate swap with a notional value of $139.4 million was transferred from Truist Bank to JPMorgan Chase Bank, N.A., as the new counterparty. The interest rate swap is used to manage changes in SOFR-based interest rates underlying a portion of the borrowing under the Term Loan A. The interest rate swap provides an effective fixed interest rate of 2.313% and is designated as an effective cash flow hedge and therefore qualifies for hedge accounting. As of March 31, 2026, the notional amount of the interest rate swap was $139.4 million, and will remain static until maturity in December 2026. As of March 31, 2026, the fair value of the interest rate swap asset recorded in other non-current assets in the unaudited condensed consolidated balance sheets was $1.5 million. As of March 31, 2026, $1.0 million was recorded in accumulated other comprehensive income, net of tax in the unaudited condensed consolidated balance sheets. During the three months ended March 31, 2026 and 2025, the loss on fair value of the interest rate swaps, net of tax recorded in accumulated other comprehensive income in the unaudited condensed consolidated statements of comprehensive income was approximately $0.6 million and $1.5 million, respectively. Differences between the hedged SOFR rate and the fixed rate are recorded as interest expense in the same period that the related interest is recorded for the Term Facility based on the SOFR rate. In the three months ended March 31, 2026 and 2025, the Company recorded a reduction in interest expense of $1.0 million and $1.2 million in relation to the interest rate swaps, respectively. Included in these amounts for the three months ended March 31, 2026 and 2025 are reclassifications out of accumulated other comprehensive income of $0.7 million of interest income and $0.9 million of interest income, respectively, related to terminated and de-designated cash flow hedges.
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