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INTEREST RATE SWAPS
 6 Months Ended
Jun. 30, 2026
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. Proceeds or payments from the interest rate swaps are included within cash flows from operating activities in the condensed consolidated statements of cash flows.
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
3/7/20193/11/20193/11/2029$850,000 Receive one-month SOFR, pay fixedMonthly2.595%
Swap B
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.
The combined fair values of the Company’s interest rate swaps are reflected within the condensed consolidated balance sheets as follows (in thousands):
June 30, 2026December 31, 2025
Assets:
Current portion:
Prepaid and other current assets$15,662 $9,240 
Noncurrent portion:
Other noncurrent assets23,662 15,947 
Total interest rate swap asset$39,324 $25,187 
Stockholders’ Equity:
Accumulated other comprehensive income$29,551 $18,768 
The combined effect of the Company’s interest rate swaps on the condensed consolidated statements of operations and comprehensive income (loss) was as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest (income) expense$(3,109)$(5,166)$(6,307)$(10,296)
Unrealized gain (loss) on cash flow hedges, gross$8,336 $(13,238)$14,137 $(32,864)
Less: Tax effect(1,967)3,130 (3,354)7,770 
Unrealized gain (loss) on cash flow hedges, net of tax$6,369 $(10,108)$10,783 $(25,094)
The Company does not hold any derivative instruments for speculative trading purposes.